Product insurance

✅ Why this step protects your business when things go wrong

You’ve built and tested your product—but what if it fails in the field?

Product insurance protects your business against liability, damage claims, and unexpected events related to your product. It’s a vital layer of protection once your product reaches customers—especially in regulated, high-risk, or international markets. It ensures that one faulty unit doesn’t put your whole company at risk.

📘 What you’ll cover

  • Liability in case of injury, damage, or failure linked to product use
  • Coverage for manufacturing defects, design flaws, or misuse
  • Region-specific insurance for CE, UKCA, or US compliance
  • Protection for sales through distributors, retailers, or online platforms
  • Integration of insurance documentation into compliance and contracts

🛠️ Tools and methods

  • Product Liability Policy Setup

    Work with a broker to define cover limits, territories, and exclusions.

  • Risk Profile Assessment

    Document likely failure modes, use scenarios, and safety mitigations.

  • Geographic Coverage Planning

    Ensure policies cover all countries where the product is sold.

  • Integration with Supplier and Retail Contracts

    Include insurance clauses and shared responsibility language.

  • Ongoing Incident Tracking

    Monitor product-related complaints or returns to update coverage if needed.

⚠️ Product insurance risks to avoid

  • Assuming general business insurance is enough. Product-specific risks need separate coverage.
  • No clear region coverage. Selling in the US, EU, or Asia requires different policies.
  • Missing distributor terms. Retailers often require proof of insurance before listing your product.
  • No review after updates. A design change may affect your coverage—review regularly.

💡 From startup founders

“We got everything ready for launch—then realised our insurer wouldn’t cover the US without a lab report. Getting product insurance sorted earlier would’ve saved a 3-week delay.”

– Hardware CEO, HealthTech Startup

💡 Build insurance planning into your go-to-market checklist—not as an afterthought.

🔗 Helpful links & resources

✍️ Quick self-check

  • Do we have active insurance coverage specific to this product?
  • Is the policy valid in all our current and planned sales regions?
  • Have we reviewed the terms, coverage limits, and exclusions with legal?
  • Are certificates available for retailers, partners, or compliance audits?

🎨 Visual concept (optional)

Illustration: A product unit sits next to a checklist labeled “Insured?”, “Lab Tested?”, “Sales Region OK?”. A digital dashboard shows policy status: “Liability Coverage – Active”, “Region: UK/EU/US”, “Limit: £2M per claim”. A contract PDF is stamped “Certificate Attached.”

Visual shows how product insurance builds confidence, reduces risk, and unlocks access to regulated or large-scale markets.
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