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LIABILITY COVER DESIGNED FOR FABRICATORS & MANUFACTURERS
Why Product Liability is Critical in Metal Fabrication
In metal fabrication and manufacturing, your products are often structural, load-bearing, safety-critical or integrated into wider systems. A defective bracket, frame, guard, fastener, welded joint or machined component can cause injury, property damage, production shutdowns or expensive downstream repairs.
Product Liability & Defective Work Insurance is designed to protect your business if a supplied product (or completed work) causes harm - and, depending on the policy, it may help manage legal defence costs and certain consequential losses. Insure24 helps UK fabricators and manufacturers arrange cover that reflects real-world exposure, contract requirements and supply chain obligations.
What Does Product Liability & Defective Work Insurance Cover?
Product Liability is typically designed to cover legal liability for injury or property damage caused by products you have supplied, manufactured, fabricated, altered, repaired or installed (depending on the nature of your work). Defective Work exposure can sit alongside product liability - but it’s important to understand the difference between: (1) third-party injury/property damage claims, and (2) the cost of putting your own work right.
Policies differ, so the right approach is structuring cover around your activities and the contracts you work under.
- Products Liability – injury or property damage caused by a defective product after it leaves your control
- Completed Operations – liability arising from work you have completed on a customer site (where applicable)
- Legal Defence Costs – solicitors, experts and defence costs (subject to policy terms)
- Worldwide Products Liability – where you export or supply internationally (optional/underwritten)
- Vendors / Principals Cover – where customers require being noted/covered (policy dependent)
- Sudden & Accidental Pollution – limited pollution cover may be available (sector dependent)
- Failure of Safety Products – e.g., guards, barriers, handrails (needs correct disclosure)
- Contractual Liability – some contractual liabilities may be accepted (limited and underwritten)
- Defective Work Allegations – claims alleging defective workmanship causing damage
- Consequential Damage – where your product causes damage to other property (key for fabricators)
- Tooling / batch issues – exposure from repeated defects across a production run
- Recall / rectification extensions – optional, limited cover for recall costs (where available)
- Fitness for purpose disputes – claims alleging the product wasn’t suitable as supplied (subject to wording)
- Installation liability – if you install fabricated items on-site (often sits with PL/Products)
- Quality assurance failures – claims triggered by tolerance/material defects (needs careful underwriting)
- Excess and conditions – terms can be tailored to your risk management approach
Defective Product vs “Putting Your Own Work Right”: The Key Difference
One of the biggest sources of disappointment in claims is misunderstanding what liability policies are designed to do. In many cases, product liability covers injury or damage to third-party property caused by your product - but it does not automatically cover the cost of repairing or replacing your own defective product.
For example, if a fabricated bracket fails and damages the client’s machinery, product liability may respond to the damage to the machinery (third-party property damage) and legal costs. But the cost to replace the defective bracket itself may be excluded as “your own product”. This is why optional extensions like recall/rectification, or specific contractual solutions, can be important.
The right approach is designing your insurance programme around your real exposures: what happens if the product fails, where it is installed, how it interacts with other systems, and what your contracts say you are responsible for.
Common Claim Scenarios for Fabricators
- Weld failure causing a guard/structure to collapse, injuring a worker
- Machined component tolerance error leading to equipment failure and production shutdown
- Incorrect material grade supplied, leading to cracking or premature corrosion
- Defective handrail/balustrade installation causing injury
- Frame or bracket failure damaging client plant, vehicles or building elements
- Sharp edges / burrs causing injury to end users
- Batch defects from tooling wear or calibration drift
- Subcontracted finishing/coating issues leading to premature failure
Why Contracts Can Create Hidden Liability
Many OEM and principal contractor agreements include terms that expand your liability beyond “negligence”. Examples include “fitness for purpose” clauses, broad indemnities, penalties, and requirements to bear costs of removal and reinstallation.
- Fitness for purpose obligations
- Broad indemnity clauses for downstream losses
- Removal and reinstallation costs
- Batch rejection / chargeback clauses
- Liquidated damages for delays
- Worldwide jurisdiction requirements
Insurance can help - but it must be aligned to contractual risk, and some liabilities may be uninsurable or require bespoke solutions.
Who Needs Product Liability & Defective Work Cover?
If you manufacture, fabricate, machine, weld, assemble, finish or install metalwork, you’re exposed to product liability risk. The severity depends on where your products end up: consumer-facing environments, industrial plant, safety-critical systems, vehicles, medical equipment or public spaces.
This cover is common for:
Workshop & Production Fabricators
- CNC machining and precision engineering firms
- General metal fabrication workshops
- Laser/plasma/waterjet cutting businesses
- Press brake and forming operations
- Welding and coded welding providers
- Powder coating and finishing operations (where included)
Installers & Assembly Contractors
- On-site installation of fabricated metalwork
- Mezzanine/platform/staircase installers
- Machine guarding and safety barrier installers
- Architectural metalwork contractors
- Industrial support and maintenance fabrication
- OEM supply chain partners and sub-contract manufacturers
“A customer alleged our fabricated guard caused damage to their production line. The policy helped with the defence and settlement costs, and the support from Insure24 kept the claim moving.”
Director, UK Fabrication & ManufacturingHow Much Does Product Liability Insurance Cost for Fabricators?
Costs vary based on the type of product, end use, turnover, export exposure and claims history. Insurers also consider quality controls, testing regimes, traceability and the severity of potential harm.
For example, a fabricator producing decorative metalwork has different exposure to a business producing safety barriers, load-bearing steelwork or components for industrial machinery. A good risk presentation and clear scope of work can improve pricing.
Typical Pricing Factors
- Turnover split by product line and customer type
- Where products are used (public areas, industrial plant, safety-critical)
- Export territories and jurisdiction (UK only vs worldwide)
- Largest contract/order values and batch sizes
- Claims history and near-miss record
- Quality assurance, inspection and traceability controls
- Welding qualifications and certification (where relevant)
- Contractual terms (fitness for purpose, indemnities, penalties)
Limits & Practical Recommendations
- Typical limits: £1m, £2m, £5m, £10m (often driven by contract)
- Exports: consider worldwide cover if you supply overseas
- Supply chain: align cover with OEM requirements and vendor agreements
- Excess: set at a level you can absorb without harming cashflow
- Extensions: explore recall/rectification options where relevant
- Documentation: keep records for traceability and defence
The most common issue is under-insuring the severity of downstream loss - especially where products integrate into high-value equipment.
How to Get Product Liability & Defective Work Cover
The best outcomes come from a clear scope of work and strong quality controls. To progress your quote quickly, it helps to prepare: what you make, who you supply, where it’s used, whether you install, and what contracts you sign.
- 1. Describe your products – components, assemblies, structural items, safety products
- 2. Confirm end use – industrial, commercial, public-facing, safety-critical
- 3. Confirm install scope – supply-only vs supply-and-install
- 4. Provide turnover – annual turnover and split by activity/product
- 5. Share quality controls – inspection, testing, traceability, certifications
- 6. Provide claims history – incidents, complaints, recalls, near misses
- 7. Identify contract requirements – requested limits, indemnities, special clauses
- 8. Review options – limits, territories, extensions and wording suitability
FREQUENTLY ASKED QUESTIONS
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What does product liability insurance cover for metal fabricators?
Product liability is designed to cover legal liability for injury or property damage caused by products you have supplied, manufactured, fabricated or installed (depending on your activities), subject to policy terms. It can also cover associated legal defence costs.
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Does product liability cover the cost of replacing my own defective product?
Often not. Many policies cover injury or damage to third-party property caused by the defective product, but exclude the cost of repairing or replacing your own product itself. Optional extensions (such as recall/rectification) may be available depending on insurer appetite and risk profile.
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What is the difference between defective workmanship and product liability?
Product liability focuses on injury or third-party property damage caused by a product. Defective workmanship refers to issues with the work itself. Liability policies may respond if defective work causes damage, but they typically do not cover “making good” your own work unless specific extensions are agreed.
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Do I need this cover if I only make parts for other manufacturers?
Yes, in many cases. Even if you supply to other businesses, a defective component can cause injury or damage downstream once integrated into a larger system. Contracts and vendor requirements commonly mandate products liability.
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Can I get cover for exports or worldwide supply?
Yes, but it must be arranged specifically. Insurers will ask where you export, whether you have contracts in overseas jurisdictions, and what type of products you supply. The right territorial limits are essential to avoid gaps.
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Does product liability cover recalls?
Not automatically. Product recall and rectification cover is typically a specialist extension or separate policy. It can help with certain costs of withdrawing products from the market, notifying customers and managing recall logistics, subject to insurer terms and underwriting.
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What limit of indemnity should a fabricator choose?
Limits are often driven by contracts and worst-case scenarios. Common limits are £1m, £2m, £5m or £10m, but higher limits may be required for safety-critical products, large OEM contracts or public-facing installations.
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How quickly can Insure24 arrange cover?
Once we have your activity description, turnover split, end-use information, contract requirements and claims history, we can usually progress quotes quickly. If you need documents for an urgent tender or contract, call us and we’ll prioritise your request.