What Is Product Liability Insurance For Fire Protection Contractors?

Product liability insurance protects your business if a product you supply, fit, or install causes injury, damage, or loss. It covers:

• Compensation payouts

• Legal defence costs

• Claims involving faulty or defective products

• Allegations of incorrect fitting or installation of components

This type of insurance is typically included within a public liability policy, but it’s crucial to confirm with your broker that it specifically covers products you supply or install — not just your services.

Why Fire Protection Contractors Need Product Liability Cover

As a fire protection contractor, you’re often responsible for supplying and installing products such as:

• Fire alarm panels and detection devices

• Sprinkler and water mist components

• Fire suppression nozzles, tanks, and valves

• Emergency lighting or warning sounders

• Fire-resistant fixings and cable supports

If any of these items malfunction or fail to perform correctly — even if they’re installed properly — you could be held accountable.

Example Scenarios Where This Insurance Applies

Faulty Smoke Detector:
You install a batch of smoke detectors in a residential block. One fails to trigger during a real fire, leading to property damage. The manufacturer is at fault — but the claim comes to you first.

Suppression Nozzle Failure:
A mist nozzle discharges during a false activation in a restaurant kitchen, damaging equipment. The client blames the installer — you — not the component maker.

Wiring Issue in Control Panel:
You supply a third-party fire alarm panel that causes a short circuit due to a manufacturing defect. The client claims against your business for the resulting fire damage.

In all these cases, product liability insurance helps protect your business — even when the problem wasn’t your fault.

Do You Need This Cover If You Didn’t Manufacture the Product?

Yes. In the UK, the installer or supplier can still be held responsible, especially if:

• The manufacturer is based overseas or unavailable

• The product was rebranded or repackaged

• You advised the client on which product to use

• You issued certification or commissioning paperwork

Clients may also take legal action against everyone involved — including you — and leave it to the courts or insurers to determine fault.

What’s Typically Covered?

Product liability insurance usually includes:

• Claims for bodily injury caused by a product you supplied or fitted

• Property damage caused by faulty systems or components

• Legal costs to defend your business

• Compensation payouts if you’re found liable

It can also cover products:

• Supplied within the UK

• Fitted as part of a contract

• That you resell or distribute (even if you didn’t design or make them)

What’s Not Covered?

While product liability insurance is broad, it does not cover:

• Wear and tear or poor maintenance

• Faulty workmanship (covered by public liability)

• Products you design and manufacture (unless specifically covered)

• Products used outside the terms of use or spec

Always check the terms of your policy to understand its exclusions.

How Much Product Liability Cover Do You Need?

Fire protection contractors typically need:

• £2 million for smaller domestic or subcontracted work

• £5 million for commercial projects

• £10 million for council, hospital, or large-scale public jobs

Your contract or site onboarding pack will often specify the minimum required.

Is It a Legal Requirement?

No — product liability insurance isn’t legally required in the UK.
However, it’s:

• Required by most main contractors

• Expected by commercial clients

• Essential for businesses supplying physical systems or components

Operating without it could leave you paying out of pocket for damages caused by a product fault you didn’t even create.

How Is It Different from Public Liability?

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/