Product liability insurance

Provide us with your details and one of our insurance experts will contact you to discuss your requirements

Jackie Escartin

I had the pleasure of working with David from Swoop, and I couldn’t be more grateful for the support he provided throughout my loan application process. From the very beginning, David went above and beyond to guide me through every step with clarity, patience, and professionalism. He made what could have been a stressful experience feel smooth and manageable. David truly understood my business needs and worked tirelessly to ensure I got the best possible outcome. His dedication, prompt communication, and honest advice made a huge difference. Thanks to his help, I was able to secure the funding I needed — and I felt fully supported the entire way. If you’re looking for someone who genuinely cares and knows how to get things done, I highly recommend working with David at Swoop!

Jun 30, 2025

Joseph

Really good experience from start to finish. Our needs were fairly specific with the requirements of a specific maximum APR with unsecured terms and Predrag put us in touch with the perfect lender for our needs. Would highly recommend using Swoop as they were able to find us lending options that we simply wouldn't have been able to find on our own.

Jun 26, 2025

Syma Aurangzeb

Excellent customer service with a personal touch. Made the whole process easy from start to finish. Highly professional and efficient 10/10

Jun 14, 2025

London Elite

Outstanding service start to finish

Jun 11, 2025

Niki Still

Predrag was very helpful and suppportive through this process. He kept things on point and helped me to get what I was after. Incredibly appreciative of all he did to get me to this point.

Jun 9, 2025

Alun

With Ann Marie Swift, I experienced probably the most succinct, clear and helpful financial advice phone call I have had in many years. She listened and explained clearly, making the process very simple. Highly recommended!

Jun 8, 2025

Healthcare Company

Shane from swoop was very professional and patient. The service was fast and efficient. Highly recommend swoop funding.

Jun 6, 2025

Barry Chapman

Really couldn't fault the service. Adrian was highly efficient, going above and beyond to make sure everything was done and all boxes were ticked in time for the process to continue to completion. Thank you.

Jun 5, 2025

Jonno Bennett

The process was fast and efficient. They did everything that they said that they would with minimal fuss. Very friendly staff kept us informed along the way and once the facility was established a follow up welcome phone call detailed the process for drawing down the funds. I couldn’t be happier

Jun 4, 2025

Tyler Panayi

I had Ikhar from the beginning and she has been absolutely amazing and got the deal over the line. She was on point and I can’t thank her and he company enough! Highly recommend this company and Ikhar!! Thank you so much!

May 30, 2025

Add a header to begin generating the table of contents

Page written by Chris Godfrey. Last reviewed on September 21, 2024. Next review due April 6, 2026.

No manufacturing process is perfect. Every business that designs, makes, or distributes parts, components, or finished goods runs the risk that the products they supply could harm someone or damage someone’s property. These injuries or damages could happen through no deliberate fault of your own, but a simple manufacturing flaw or workshop error could still make you and your business liable for compensation claims that measure in the tens or hundreds of thousands of pounds.

Fortunately, product liability insurance can protect your business from potentially catastrophic costs should the products you provide create a problem for your customers. Read on to find out more.

Add a header to begin generating the table of contents

What is product liability insurance?

Product liability insurance (PLI) – also known as ‘product insurance’ – is a business insurance designed to protect companies, partnerships, sole traders and the self-employed from financial loss in the event that someone is harmed, or property is damaged due to the products that they supply.

Important tip: Product liability insurance isn’t only for manufacturers. In the event of an accident, your business could be held liable even if you only distributed or repaired the product.

What's the difference between product liability and public liability insurance?

Public liability insurance covers your business for claims for personal injury or property damage arising from the services your organisation provides. Product liability insurance protects you from injury or property damage claims caused by any faulty products that your business has designed or supplied.

Who needs product liability insurance?

Suitable for SMEs, sole traders and the self-employed, product liability insurance is a must for any business that designs, manufactures or distributes:

Parts for finished goods
Components for finished goods
Finished goods
Packaging for all of the above

Your business could also be held liable even if you outsource your manufacturing and only put your name on the finished product, or you have repaired or refurbished a faulty product that caused injury or property damage. You may also be at risk if you import products from outside the European Union, cannot identify the original manufacturer, or they have gone bust leaving your business as the last man standing.

Why do I need product liability insurance? What could go wrong?

It doesn’t take much to cause an accident. Even the smallest part or finished product has the potential to cause physical harm or property damage if it’s faulty, fitted incorrectly, or wrongly supplied for purpose. For example – a manufacturer produces electrical components used in consumer hair dryers. A minor error in a wiring connector causes a short circuit that creates an electrical fire. The part is only worth a few pennies, but the compensation claims from the user who was burned could easily cost tens of thousands of pounds. Could your business survive such an issue?

Is product liability insurance required by law?

No, only employers’ liability insurance is legally required. Other business insurances are optional, although some clients and distributors may require your organisation to have product liability insurance in place before they will trade with you.

How much product liability insurance do I need?

There is no real limit to the property damage or level of injury that faulty products can cause. As such, UK providers of parts, components and finished goods will typically insure themselves for £1million to £10million depending on the size of their business and the type of products they supply.

What does product liability insurance cover?

Product liability insurance protects against claims for:

Personal injuries caused by faulty or wrongly supplied product(s)
Loss of or damage to property caused by faulty or wrongly supplied product(s)
Unforeseeable circumstances such as product faults that quality control systems could not reasonably identify or foresee.

PL may not cover against:

Personal injury or property damage from faulty products caused by poor workmanship or negligence
Financial losses suffered by a person or business caused by your faulty product.

How much does product liability insurance cost?

Premiums for product liability insurance can start at less than £4 per month, but costs will depend on your business type and the risks attached to what you sell, making every quote unique.

How Swoop can help

All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let a faulty product put your business in a spin. Contact Swoop today to compare top-quality product liability cover from different providers and to discuss all your business insurance needs.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.