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Under the Consumer Protection Act 1987, if your product causes injury or damage, you can face significant legal liability — even if you didn't manufacture it. Here's everything you need to know about product liability insurance in 2026. Updated April 2026 Who Needs Product Liability Insurance?
Product Liability Under the Consumer Protection Act 1987The Consumer Protection Act 1987 creates strict liability for defective products — meaning you can be liable for a claim even if you were not negligent. The key elements: the product must be defective (not as safe as people generally expect); the defect caused the damage; and the claimant suffered personal injury or property damage over £275. Importers are treated as manufacturers if the original manufacturer is outside the UK and EU. This is why online importers and Amazon third-party sellers must have product liability cover. Amazon Product Liability Insurance RequirementsAmazon UK requires sellers to have product liability insurance of at least £1 million per occurrence if their gross sales exceed approximately £10,000/month (check Amazon's current requirements as these can change). Amazon has increasingly enforced this requirement and can suspend seller accounts for non-compliance. Platforms including eBay and Etsy strongly recommend (and some require) product liability insurance for sellers of physical goods. Product Liability Insurance Costs UK 2026
These are indicative ranges — actual premiums depend heavily on your turnover, product type, claims history and distribution channels. Always get multiple quotes from specialist business insurers. Best Product Liability Insurance Providers UK 2026
KAELTRIPTON VERDICT Product liability insurance is not legally required but is essential for any business supplying physical products. Under the Consumer Protection Act 1987, you can face significant liability even without negligence. Combined public and product liability policies start from £80-£200/year for small businesses — excellent value versus the potential cost of a single claim. Rating: ★★★★★ Essential for Any Product Business Q: What is product liability insurance? A: Covers claims from customers injured or suffering property damage from a product you manufactured, sold or distributed. Q: Who needs it? A: Manufacturers, retailers, importers, online sellers (Amazon, eBay, Etsy). Food producers and children's toy sellers especially. Q: Is it legally required? A: No — but many platforms require it, and Consumer Protection Act 1987 strict liability makes it practically essential. Q: How much does it cost? A: Combined PL and product liability from £80-£200/year for small businesses. Higher for food, electrical goods and children's toys. Related Articles This article is for informational purposes only and does not constitute financial advice. Insurance prices change frequently — always compare quotes before buying. All figures verified April 2026. |
Product Liability Insurance UK 2026: Do You Need It?
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