Product Liability · 20 June 2025 · 8 min read · By Naveed Amiri
73% of organisations experienced a product recall in the past five years. For SMEs, the financial burden can be catastrophic without the right insurance in place.
Product recalls cost UK businesses millions. Learn why SMEs in manufacturing and production need Product Recall insurance to protect against financial, reputational and operational damage.
Why this matters for UK businesses and policyholders
This product liability insight is part of Premier Insurance's ongoing risk briefing series for UK SMEs, landlords, restaurants, contractors and private clients. As an FCA-regulated independent broker established in 1983, full BIBA member and WTW network partner, we monitor regulatory change, claims trends and underwriter appetite across the Lloyd's and London markets so our clients are never caught off-guard.
Speak to a specialist UK insurance broker
If this article has raised questions about your own cover, speak to a Premier Insurance broker on 020 8908 2426, message us on WhatsApp 07954 331362 or email hello@premier-insurance.co.uk. We compare cover from 200+ insurers including AXA, Aviva, Allianz, Hiscox, Zurich, RSA, QBE and Lloyd's of London syndicates. See our Professional Indemnity Insurance page for the most relevant product to this topic, or browse our full insurance blog and guides library.
Related Product Liability insights from Premier Insurance
- The Right of Recourse Clause: Why It Could Make or Break Your Product Liability Claim — This clause, often buried in supplier contracts, can be the difference between a paid claim and a costly financial loss. Here's what every importer, distributor, and manufacturer needs to know.
- New Product Defect Regulations Signal Heightened Liability Risk — The EU General Product Liability Directive expands the definition of 'product' to include software, AI and digital services — with major implications for UK exporters.
- EU Product Regulation Changes Could Increase Life Science Exposures — The revised EU Product Liability Directive introduces strict liability for software and AI, expanded damages for psychological harm, and a 25-year claims window — transforming risk for life sciences.
- The Autonomous Vehicle Revolution: Are Your Fleets Ready for 2026? — With the UK's Automated Vehicles Act now in force, the liability landscape for fleet operators is shifting fast. Here's what you need to know about insuring AVs and staying ahead of the curve.
- Cybercrime: The Silent Threat to UK SMEs — And How to Fight Back — 43% of UK businesses reported a cyber breach last year. With attacks growing more sophisticated, cyber insurance and the right technical controls are no longer optional.
- From Bananas to Business: Why Marine Cargo Insurance Matters More Than You Think — Global supply chains are more fragile than ever. One delayed or damaged shipment can cost thousands. Discover why marine cargo cover is essential for importers and exporters.