What does product liability insurance cover?

Product liability insurance covers compensation claims and legal fees if someone sues you because they’ve been injured or their property has been damaged by one of your products.

In the case of an injury or damage claim that’s made against you, your product liability insurance could cover both the compensation payout and the legal fees, up to the limit of your policy. Simply Business offers public liability and product liability cover up to £10 million.

If a product injures someone or damages something, the heaviest burden of responsibility lies with the manufacturer. However, even if you don’t manufacture the products you sell, there are still some circumstances in which you could be held responsible. For example if your products bear the name of your business, or if the manufacturer can’t be traced or has gone out of business, the buck may stop with you.

Compensation payments can take into account things like lost income due to injury, or repair or replacement of goods in the case of property damage, so they can be very high. Product liability insurance can cover these costs so that your business isn’t crippled if you face a compensation claim.

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