What is product liability insurance?
Product liability insurance covers your business if a product you’ve sold, supplied or installed causes unexpected personal injury or property damage. Without this policy in place, you could be left facing huge compensation claims—even if your business didn’t manufacture the product responsible. However, by taking out a product liability insurance policy, you won’t need to cover the costs of any claims or legal expenses brought against you, and can continue running your company without any financial strain.
Why do you need product liability insurance?
Product liability claims could arise from many situations, no matter what your trade is. For example, if you own a catering business, a foreign object could become embedded in food you’ve sold, causing a customer to choke. Or if you’re a handyman, you might face legal action if a kitchen appliance you’ve installed malfunctioned and started a fire in a client’s home. Whatever the incident, you could be deemed legally responsible if your business has repaired or altered the product, your business name is on it, or you’ve imported it from outside the EU. If your company didn’t create the product itself, you may still be liable if you can’t identify the manufacturer, or they’ve gone out of business entirely. However, taking out product liability insurance with Tradesman Saver means we’ll foot the bill for any hefty payments so you don’t have to.
Tradesman Saver’s Product Liability Cover
Our standard cover is:
- Up to £5 million public & product liability
- £10,000 financial loss cover (with an option to increase to £50K)
- Worldwide liability cover for temporary work abroad for up to 14 days (excluding the USA and Canada)
Here at Tradesman Saver, we activate your product liability insurance policy from the moment you purchase it, instantly protecting you from any legal action. We offer product liability with an indemnity limit of £1 million. This is the most we cover for a standard individual claim, though you can boost this to £2 million or £5 million, which could be necessary depending on your clientele. Some customers will demand higher levels of product liability insurance before you begin a job, for example, local authorities will usually request £5 million indemnity. If you think you need to increase your cover, please contact us and we’ll organise a tailored policy to meet your needs.
When you take out product liability insurance with Tradesman Saver, you automatically receive four additional covers as part of our standard comprehensive package. This includes public liability, which safeguards your business if it causes property damage or personal injury to a customer or member of the public. If somebody tripped over your tools, or scratched a client’s car during work, public liability insurance would cover you for both of these instances. We also pay up to £10,000 for the accidental death of anyone from your company, including yourself, and £10,000 or £50,000 for financial losses inflicted on a third party. Our automatic insurance package provides up to £250,000 legal expenses as well.
On top of product liability insurance and the four additional automatic covers, you may decide to take out some of our optional policies. For example, employer’s liability is a legal requirement if your business employs a team of staff. Other insurance to consider includes income protection, guaranteeing regular payments if you’re temporarily forced out of work, or professional indemnity, which protects you if you need to pay compensation after delivering bad advice, poor designs or insufficient services.
Online & Anywhere
We like to keep things simple. Your quote, purchase, and documents are all available online whenever you need to access them.
No need to wait for your documents. You’re covered from the moment you purchase.
Public Liability, products liability, financial loss, legal expenses and accidental death cover as standard on every policy
Cashflow is important to every business. Spread the cost & pay in easy, monthly instalments.
Product Liability Insurance: Frequently Asked Questions
What does product liability insurance cover?
Product liability insurance covers you against any legal action resulting from property damage or personal injury caused by one of your products. Compensation costs and legal fees can stack up quickly, which is why we provide an indemnity limit of £1 million for a single claim. However, if you believe your business would benefit from higher coverage, we can increase this to £2 million or £5 million. Get in touch with a member of our team, and we will gladly organise this special policy for you.
Is product liability insurance compulsory?
Though product liability insurance isn’t a legal requirement in the UK, most business owners will have a policy in place. You can never predict when an accident will strike, and it’s much safer to ensure that the costs are covered before it’s too late and your business is bearing the financial burden. This is especially important when you consider that you could still be held liable without manufacturing the product in question. What’s more, some clientele, like the local authorities, will only do business with you if you can display a specific amount of product liability insurance.
Will I automatically get product liability insurance with any Tradesman Saver insurance policy?
All Tradesman Saver insurance policies include products liability insurance as standard, as well as public liability, accidental death, financial losses and legal expenses. All five of these automatic covers will be accounted for in the price of your quote.
Do I really need products liability insurance if I don’t manufacture products?
You can be held legally liable for any accidents caused by products you provide your customers, even if you’re not the manufacturer. As the installer or supplier of the faulty product, you will almost always be the first point of contact for your customers. And if you’re unable to identify the manufacturer of the product, there’s no way to pass any compensation claims onto them. If it then materialises that the manufacturer is no longer trading, it’s even more unlikely you’ll be able to recover costs and will, therefore, be held responsible for all payments.
How much product liability insurance do I need?
This mostly depends on your occupation and the nature of your work. Think about the products you sell, supply or install and how large any potential compensation claims could be. Remember these will usually include repair or replacement costs to damaged property, as well as medical fees and lost income if a customer has been injured by your product. You also need to check your client contracts in case they request a specific level of product liability insurance.
Some tradesman insurance companies don’t offer product liability insurance in their policies. Why do you?
At Tradesman Saver, we know that product liability insurance is an important part of any business cover. If you’re a tradesman providing products to clients, you’re vulnerable from a legal standpoint if a claim is made against you. Regardless of the manufacturer’s role, your business could still be held liable for any resulting property damage or personal injuries. As your clients will probably seek compensation from you during the aftermath of any incident, our cover is here to get you out of any sticky situations.
Who needs product liability insurance?
Anybody that provides their customers with products could benefit from product liability insurance. For example, if a central heating engineer inadvertently fits a faulty pump to a boiler and causes a flood, we will deal with the claim. And here at Tradesman Saver, we automatically include product liability cover as part of our standard insurance package.
How much does products liability insurance cost?
Product liability insurance with Tradesman Saver can cost you as little as £53 annually. The final figure will be determined by your chosen indemnity limit and any additional covers you’ve selected as part of your personalised insurance package. Prices can also vary depending on your particular trade, and how likely it is that your work could lead to potential accidents. And remember, this cost also includes cover for public liability, legal expenses, financial loss, and accidental death.
used for my husband’s business first then came back to do mine as it was so simple to arrange.
Be nice if the insurance was a bit wider to cover my other freelancer work.
Prices from TS were very competitive compared to my previous insurer. I called to confirm that domestic and commercial premises were covered for or business and they said Yes! Winner! Like all… Read more