M & M Underwriting Limited focuses on providing high-quality Product Liability insurance solutions to UK-based organisations, many of whom have never previously purchased such cover because:

They are only just starting to supply tangible products;

They did not appreciate that they had a product liability exposure; or
They have never found an underwriter with the capability to offer affordable protection.

With this in mind, we hope the following brief overview of Product Liability is useful for brokers and businesses alike.

1. Introduction

Product Liability is the legal responsibility an organisation has for harm caused by products it designs, manufactures, imports, installs, services, alters, or repairs.

This responsibility begins once a product leaves the organisation’s custody or control - whether sold to a customer, sent to a third party for testing, trial or demonstration, or given away as a promotional item.

In the UK, manufacturers, sellers, and importers can all be held liable if a product causes injury, illness, or property damage.

Contrary to popular belief, the UK does still make things. While mass production has largely moved offshore, the UK remains home to thousands of exceptional engineering minds working on inspirational solutions to global challenges - such as clean energy generation and storage, low-carbon transport, sustainable food production, and water conservation.

The insurance industry often categorises businesses by size or premium spend, rather than by the complexity of their activities. Microenterprises and small SMEs typically generate lower premiums, so insurers aim to transact them as efficiently as possible - via online portals, statements of fact, and AI-driven processes - reserving human underwriting resource for larger accounts.

2. Key UK Product Liability Exposures

a. Manufacturing Defects
These occur when a product is manufactured incorrectly or deviates from its intended design or function.
Example: A batch of electrical devices is assembled incorrectly, causing overheating and fire.

b. Design Defects
A product may be inherently unsafe due to poor design, even if manufactured correctly.
Example: A power tool lacks adequate safety guards, increasing the risk of injury.

c. Failure to Warn / Inadequate Instructions or Packaging
A product may lack clear usage instructions, warnings, safety labels, or may have defective packaging.
Example: A chemical product sold without proper handling instructions causes skin burns.

d. Importer Liability
Importers can be held liable for defective products they bring into the UK, even if they did not manufacture them - particularly if the importer:

Has their name on the product;
Repairs, refurbishes, or modifies the product; or
Cannot identify the manufacturer, or the manufacturer has ceased trading.

e. Contractual Liability
An organisation may assume additional exposures under customer purchase orders containing provisions such as:

Minimum insurance requirements;
Vendor extensions;
Waivers of subrogation / hold harmless agreements;
Indemnity clauses;
Additional or joint insured requirements.

f. Consumer Protection Legislation
Legislation such as the UK Consumer Protection Act imposes strict liability on organisations that sell, supply, alter, or service products for consumers, with very limited defences available against third-party injury, illness, or property damage claims.

3. Product Liability Insurance Protection from M & M Underwriting

Certain industries are more exposed to product liability claims due to the nature of their products. M & M Underwriting targets:

Safety-critical products
Products exported to the USA / Canada
Start-ups and small manufacturers
Specialist sectors including motorsport, energy, marine, defence, and transport

The Cover Provided

The insured is covered in respect of their legal obligation to pay compensation (including claimants’ costs) for injury and/or property damage caused by their products.

The policy also covers defence costs incurred in handling claims, including where necessary proving that the insured has no legal liability to the claimant.

In our experience, the majority of product liability claims can be successfully defended by demonstrating that the insured has no legal liability, with claims often arising from factors such as:

User error or failure to follow product instructions or warnings
Products altered, serviced, or repaired by third parties after sale
Product abuse or damage occurring after leaving the insured’s custody or control

Defence costs cover is therefore invaluable. Even policyholders with absolute confidence in their products cannot control whether a third party perceives a defect and brings a claim. Without defence costs cover, an organisation must appoint and fund its own legal team to defend its position.

Policy Trigger

Our wording allows cover to be written on either:

Incidents Occurring During the Period of Insurance, or
Claims Made and Notified

Our standard approach is to provide cover on an Incidents Occurring basis. However, flexibility exists to avoid gaps in cover where a previous insurer provided Claims Made protection.

Regardless of trigger, it is important to disclose any historic product sales differing from anticipated future sales, for example:

Past exports to the USA / Canada (perhaps recently suspended due to trade tariffs)
Products previously sold

What We Offer Our Brokers

In short: the same level of service and support for smaller clients that you expect for larger, risk-managed ones.

We provide:

A long-term, stable home for difficult-to-place engineering businesses across automotive, rail, motorsport, defence, marine, energy, and medical sectors
Personalised service with a 24-hour turnaround for risks in the £2k-£10k premium range
Technical support on specialist product liability topics, including wordings, triggers, run-off exposures, design liability, hold harmless agreements, and indemnity clauses
Exclusive quotations
A genuine voice - direct access to decision-makers

Speak to M & M Underwriting today

If you have a complex engineering-based risk that isn’t suited to automated underwriting or a client who needs thoughtful, technically grounded product liability support, M & M Underwriting is ready to help. For enquiries, quotations or guidance, speak directly with Gary at M & M Underwriting using the details below:

T: 020 8687 4137
M: 07977 694105
E: gary@mmunderwriting.co.uk

Get in touch today for a responsive, expert-led underwriting service that puts understanding first.

We are Fair Tax Mark accredited, a supporter of the Insurance Museum, a sponsor of the Niche Vehicle Network, and a member of the MGAA.

Understanding Product Liability Exposures for UK Manufacturers and Importers