Product Liability Insurance for Food Manufacturers

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Protect your brand and balance sheet against food product claims - from contamination and allergens to packaging faults and labelling disputes.

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We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

PRODUCT LIABILITY INSURANCE THAT HELPS YOU SCALE SAFELY

Why Product Liability Matters for Food Manufacturers

Food manufacturing is one of the highest-exposure sectors for product liability because your goods are ingested, often distributed widely, and can affect large numbers of consumers quickly. Even where you have robust HACCP procedures, allergen controls and strong supplier assurance, problems can still occur - including contamination, labelling errors, packaging failures, temperature control issues or cross-contact incidents.

Product liability insurance is designed to protect your business if someone claims that your food product caused injury, illness or property damage. It typically covers your legal defence costs and any damages you become legally liable to pay - and many policies can be tailored for modern supply chains where you supply retailers, wholesalers, foodservice, e-commerce or export markets.

What Does Product Liability Insurance Cover?

While cover varies between insurers and depends on your operations, a strong food manufacturing product liability policy is typically built around third-party injury/illness claims and legal defence. You can also extend cover to reflect your real-world risks - such as retailer requirements, overseas territories, and contractual indemnities.

  • Injury & illness claims – allegations of food poisoning, allergic reactions, choking hazards or contamination.
  • Legal defence costs – solicitors, experts and court costs even if the claim is unfounded (subject to policy terms).
  • Damages & settlements – compensation where you are legally liable.
  • Property damage – where your product causes damage to third-party property (e.g., contamination of another product batch).
  • Worldwide cover (optional) – for exports or online sales outside the UK (territories agreed with insurer).
  • Contractual liability (optional) – support where contracts impose stricter terms than common law.
  • Vendor/retailer requirements – evidence of cover, limits and wording support for supply agreements.
  • Defence & investigation – incident response coordination and expert support depending on insurer panel.
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Common Product Liability Risks in Food Manufacturing

Food claims can escalate quickly - not only because of the health consequences, but because products are distributed widely. A single error can trigger a chain of retailer queries, quarantines, social media attention, and legal demand letters. Below are some of the most common exposures we see.

  • Allergen mislabelling (e.g., missing “may contain” or incorrect ingredient lists)
  • Cross-contamination due to shared lines, inadequate cleaning or poor segregation
  • Microbiological contamination (e.g., bacteria growth from temperature abuse)
  • Foreign body incidents (e.g., plastic, metal fragments, glass)
  • Packaging failures causing spoilage, leakage, or tampering concerns
  • Incorrect cooking/storage instructions leading to illness
  • Supplier ingredient issues passed into your finished product
  • Retailer claims for consequential losses (where contractually enforceable)
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Who Needs Product Liability Insurance?

If you manufacture, pack, label, distribute, import or supply food products, product liability is one of the key protections you should have in place. It’s commonly required by wholesalers, retailers, distributors and many foodservice buyers - and it is especially important if you sell under your own brand.

We arrange cover for a wide range of UK food manufacturing operations, including:

  • Bakeries, bread manufacturers and confectionery producers
  • Meat processors, poultry suppliers and prepared meals producers
  • Dairy processors and cheese manufacturers
  • Sauce, condiment and spice manufacturers
  • Frozen food manufacturers and cold chain producers
  • Plant-based food brands and allergen-sensitive producers
  • Contract manufacturers and co-packers
  • Importers and distributors of finished goods

Choosing the Right Limit of Indemnity

One of the most common questions is: “How much product liability cover do we need?” The answer depends on your distribution, your buyer requirements, your contract terms, and the potential severity of incidents. For example, supplying a national supermarket chain or exporting to multiple territories can increase both the likelihood of a claim and the potential size.

Typical limits range from £1 million to £10 million - but higher limits can be arranged, particularly for businesses that sell into large retailers, export markets, or supply ingredients used in other manufacturers’ products.

We’ll help you align your limit with your risk profile by considering:

  • Annual turnover and batch size
  • Retailer/wholesaler contractual requirements
  • Export territories and legal environments
  • Allergen exposure and product type
  • Whether you supply ingredients or finished goods
  • The level of traceability, QA, and HACCP controls you operate
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Product Liability vs Product Recall Insurance

Product liability insurance is designed to respond when a third party alleges injury, illness or property damage caused by your product. However, many food incidents create costs even when no injury has occurred - such as customer notifications, logistics, destruction of stock, quarantines and crisis communications. These are usually addressed by product recall (also known as product withdrawal) cover.

In practice, many food manufacturers benefit from a combined approach: strong product liability limits plus optional recall cover aligned to your buyer requirements. If you supply major retailers, recall insurance is often strongly recommended - and sometimes contractually required.

Product Liability typically helps with:

  • Claims alleging injury or illness
  • Legal defence costs
  • Damages/settlements where you are legally liable
  • Property damage to others
  • Some contractual liabilities (if insured)

Product Recall can help with:

  • Recall logistics, transport and storage
  • Disposal and destruction costs
  • Customer notification costs
  • Crisis management / PR support
  • Retailer fees (where policy allows)

Why Choose Insure24

  • Food manufacturing specialists – we understand HACCP, traceability, audits and retailer requirements.
  • Insurer access – we compare quotes from leading markets and specialist underwriters.
  • Contract-ready wording – help aligning cover limits and evidence for buyers.
  • Fast turnaround – efficient quoting and clear advice.
  • Ongoing support – adjustments as you grow, add products, or start exporting.
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How to Get Product Liability Insurance for Your Factory

We’ll ask practical questions to help insurers price your risk accurately and offer the right terms. This is typically quick for established manufacturers and still very achievable for start-ups or new product launches.

  • 1. Tell us what you manufacture and how it’s distributed
  • 2. Confirm turnover, territories, and retailer requirements
  • 3. Review your QA / HACCP controls and traceability
  • 4. Compare options and select the right limit
  • 5. Bind cover and receive documentation
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FREQUENTLY ASKED QUESTIONS

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What is product liability insurance for food manufacturers?

Product liability insurance helps protect food manufacturers if a third party alleges your product caused injury, illness, or property damage. It typically covers legal defence costs and compensation where you are legally liable, subject to policy terms and conditions.

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Does product liability cover food poisoning claims?

Product liability is designed to respond to allegations of injury or illness caused by your product, which can include food poisoning claims. Your insurer will assess the circumstances, evidence, and policy wording.

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Do I need product recall insurance as well?

Often, yes - especially if you supply retailers or have large batch distribution. Product recall cover can help with recall logistics, disposal, notifications and crisis support, which may not be covered under standard product liability.

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How much product liability cover do food manufacturers typically buy?

Many businesses purchase limits between £1m and £10m, but the right level depends on turnover, product type, retailer requirements, territories, and potential severity. Higher limits can be arranged where required.

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Does product liability cover allergens and labelling errors?

Policies are designed to cover third-party claims of injury/illness, which may arise from allergen incidents. However, cover depends on the facts and policy wording. Strong allergen management and accurate labelling are important for both risk and insurability.

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Can start-up food brands get product liability insurance?

Yes. Start-ups can be insured, including those using co-packers or contract manufacturing. Insurers typically look at product type, batch controls, traceability, supplier assurance and planned distribution.

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Does product liability cover exports?

Export and worldwide cover can often be arranged, but territories should be declared and agreed. This is particularly important if you sell into the USA/Canada, where liability exposures can be higher.

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What information do you need to quote?

We typically need a summary of your products, turnover, territories, distribution channels, any retailer requirements, and details of your QA/HACCP and traceability. If you’ve had any previous claims or incidents, we’ll review these too.

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