Product Liability Insurance protects you against the legal costs and cost of compensation for injuries and damage to property caused by your faulty product. It may not cover you for faulty products resulting from poor workmanship or financial losses to a business or person caused by your faulty product.
If you do not manufacture the product but supply it you should be covered if you can show that:
The products were faulty when they were supplied to you.
You have good quality control and systems in place for retaining records.
You have records of providing adequate safety instructions and warnings of misuse.
Your manufacturer covers product safety, quality control and returns.
You included terms for the return of faulty goods to the manufacturer.
You can choose a policy that covers you between £1 million and £5 million but usually products liability insurance comes as part of a business package policy.