There are a number of ways to purchase product liability insurance on its own. However, you might find it’s the most cost-effective to buy a combined public liability and product liability insurance policy. Many business insurance providers package product liabilities alongside public liability (and some even do it free of charge).
If you already have public liability, check with your current provider to see if you already have cover for product liability. Or if they’ll give you a deal to package the two together. This can be a great way to save hassle come renewal time, leaving you with only one insurer to contact to cancel, continue or change your policy.
If you’re not sure about who you want to be your product liability insurance provider or have some questions you might like answered before diving into the sales process (‘what insurance do my competitors have?’ or ‘how much would you expect a similar company to pay?’) then you should consider comparison sites or insurance brokers. Both can offer a unique insight into the insurance market that you may not get by shopping directly with an insurer.
Comparison websites can help you quickly compare a number of different coverages, insurance levels and costs in a short time frame. They’re an especially useful tool for anyone wondering how much they should expect to pay, even if you don’t end up buying through the aggregator.
Aggregators that offer online quotes can also help you to understand the factors that impact the end cost of your insurance coverage. You can change a number of the key factors and variables insurers use to estimate your final price and see the impact they’re having; just make sure to set them all correctly before purchasing.
Another option is using an insurance broker. Brokers occupy the middle of the insurance market, sitting between customers and insurance providers. They have a unique relationship with both, helping to provide customer service and market insight to their customers and helping bring in new business for insurers.
Brokers do charge a fee for their service but remain popular even since creating excellent online comparison sites. Many small businesses find their insights, assistance with claims processes and general customer service to be well worth the extra % they charge.
Finally, if you know what you want and have identified the insurer you’d like to provide your coverage, the most cost/time-effective option is to head straight to your provider of choice directly, whether through their website or phone lines.
Insurers may offer the best prices through their own sales routes, whether over the phone or online, as they don’t have to pay a cut to brokers or aggregators. So if you know what you want, don’t be afraid to approach them.
Where to get product liability UK
The UK insurance market is well-developed, so there are a number of different ways for you to buy insurance: directly with insurers like AXA, Hiscox and Direct Line for Business, aggregators and brokers. Many let you fill out an online form and, assuming they’re happy with the information you’ve given, let you buy online and even provide insurance documents digitally, saving potentially time-consuming phone calls and email chains.
Some insurers might still want to talk to you directly before issuing a policy, which might be the case if your business has a high turnover, a large number of staff or works in an especially risky industry, for example.
On that note, almost every UK insurer or broker should have a phone line you can call to speak to a sales advisor. While these people are (of course) trying to sell you on the merits of their product, they can answer important questions around renewals, cancellations, claims processes and more. They may reassure you if you have any concerns before purchasing.
Phone lines are a great option for anyone working in a higher risk region or industry or someone who has struggled to find quotes through aggregators, which can be an issue for younger purchasers or those running especially large/risk-heavy companies.
How much is product liability insurance for a small business UK?
Product liability insurance for small businesses is frequently sold alongside public liability, often free of charge. The average cost of a combined public and product liability insurance policy is around £120-£130 per annum for a typical small business in the UK.
Keep in mind that the end cost of your policy will be dependent on many factors, including the industry you operate in, the size of your business and where you do business (e.g. do you sell to the US market or Europe or is your business purely UK based?). So don’t be surprised to see deviations from the ‘average’ market price if your business is smaller or larger than a typical company in your market.
While it’s always worth shopping around to make sure you’re getting the best deal, many insurers aren’t charging you a penny extra to hold your product liability. However, if you do choose to look for a standalone policy, quotes start from around £6.50-£7.00 per month. This will, again, depend on your business and the industry in which you operate.
