Understanding Product Liability & Recall Risks

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A UK guide for manufacturers on product liability exposure, recall costs and common insurance gaps

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Product liability & recall insurance expertise for UK manufacturers

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

PRODUCT LIABILITY & RECALL RISK EXPLAINED

Why Product Liability Is a Major Risk for Manufacturers

Any manufacturer placing products into the UK or international supply chain can be held legally liable if those products cause injury, illness or property damage. Claims can arise years after manufacture and may involve multiple jurisdictions, distributors and retailers.

What Is Product Liability Insurance?

Protection against third-party injury or damage caused by your products.


  • Injury or illness caused by defective products
  • Damage to third-party property
  • Legal defence and compensation costs
  • Cover for UK, EU and worldwide exports
  • Claims arising after products leave your control

Understanding Product Recall Risk

Recall costs are often excluded from standard liability policies.


  • Withdrawal of unsafe or defective products
  • Regulatory notifications and investigations
  • Customer and retailer communication costs
  • Destruction or reworking of stock
  • Brand damage and reputational loss

Industries at Higher Product Liability Risk


  • Food & beverage manufacturing
  • Consumer goods & household products
  • Automotive & component manufacturing
  • Electrical, electronic & machinery products
  • Medical, cosmetic and chemical products

FREQUENTLY ASKED QUESTIONS

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Is product recall covered under product liability insurance?

No. Product recall costs are usually excluded from standard product liability insurance and require a separate product recall or contamination policy.

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Do manufacturers remain liable after products are sold?

Yes. Manufacturers can remain liable for defective products long after sale, including when claims arise overseas or through third-party distributors.

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