Because your business shouldn’t pay the price for an unexpected flaw

Why Product Liability Insurance is Important

Imagine a customer buys your product, something goes wrong, and someone gets hurt. In an instant, a standard sale turns into a major legal claim.

Product liability insurance acts as your financial shield against third party claims for businesses that sell, supply, or manufacture products. As Sydney’s leading business insurance brokers, at CIG we do the heavy lifting and find the exact policy your products require, leaving no gaps in your protection.

What Is Product Liability Insurance?

Whether you design, make, import, or distribute goods, product liability coverage protects your business against the financial fallout of faulty products.

Product liability insurance covers legal claims arising from a product you sell, supply, or manufacture that causes injury or property damage to a third party. In Australia, insurers almost always package this form of liability insurance together with public liability as one combined policy, ensuring your business maintains complete insurance cover against both operational and product related risks.

As a dedicated Sydney business insurance broker, CIG tailors product liability insurance to protect small to medium enterprises (SMEs) across Australia from the financial impact of faulty goods, recall disruptions, and manufacturing liability claims.

One unexpected product defect shouldn’t threaten your entire company. Get comprehensive product liability coverage that safeguards your goods every step of the way. Partner with CIG’s Sydney insurance brokers to lock into the right protection today.

Who Needs Public & Product Liability Insurance?

If your business makes, sells, or supplies physical goods, the short answer is yes. Product liability insurance isn’t just for massive manufacturers. If you have any kind of role in the supply chain delivery of a product, you will likely need insurance. There are options for businesses of all sizes across the entire supply chain, see below to see where your business fits.

Importers & Wholesalers

Under Australian Consumer Law, if you import goods from overseas, you are often legally deemed the manufacturer. If a product causes harm, you bear direct legal liability if the overseas maker cannot be pursued.

Manufacturers & Fabricators

Direct liability for design defects, structural failures, assembly errors, contaminated materials, or inadequate warning labels and safety instructions. One damaged product can stall production or cost a client.

Retailers & E-Commerce or Online Stores

Selling goods directly to end users means carrying legal responsibility for third-party injuries or property damage caused by products sold in-store or online.

What Does and Doesn’t Product Liability Insurance Cover?

Product liability insurance shields your business against third-party financial exposures, but it does not cover internal operational losses or unrelated liabilities. At CIG we can help you understand how coverage breaks down.

What Is Covered What Is Not Covered
Third-Party Personal Injury: Financial compensation for medical expenses, treatment, and lost income if your product causes injury to a third party. Product Recall Costs: Expenses related to pulling defective stock from shelves, shipping, or destroying faulty inventory.
Third-Party Property Damage: Costs to repair or replace third-party property damage resulting from a product failure or malfunction. Faulty Workmanship Rectification: The cost to repair, remake, or fix your own defective product or poor craftsmanship.
Legal Defence Costs: Representation, expert witness fees, and legal expenses required to defend your business against eligible claims. Professional Advice Claims: Claims arising from faulty advice, design services, or consulting, that’s professional indemnity, we can also help with this.
Settlement & Court Fees: Awarded legal compensation or settlements arising from covered third-party property damage or harm. Employee Injuries: Personal injury or illness suffered by your own staff (this falls under statutory workers compensation).

How our Brokers Process Works

Detailed Assessment of Your Operational Risks

We start by listening. Whether you’re supplying local retailers daily or importing components quarterly, we map out what you distribute, how it is made or sourced, who uses it, and where the risks hide.

Compare Policies From Australia’s Top Insurers

We put your risk profile to the market and compare product liability insurance options from Australia’s leading insurers, laying out your coverage options and costs.

Tailor Your Sums Insured & Limits

Many insurance services leave gaps. We calibrate your sums insured and policy conditions to match the real exposure of your products, so you’re never over paying or are undercovered.

Partner for the Long Term

Unlike traditional brokers, we don’t disappear once the policy is placed. When something goes wrong with a product, we advocate for you through the claim, and as your business grows, we adjust your protection to keep pace.

Ready to get started? Get in touch with a CIG broker today.

How Much Does Product Liability Insurance Cost?

Because every business manufactures, imports, or sells different goods, there is no universal price tag for product liability insurance. Premiums are calculated based on your specific exposure to risk, meaning costs can vary from one business to another.

Instead of relying on generic estimates, CIG brokers can assist with determining and evaluating the most optimal premium for your business, see key factors we take into consideration below.

Product Type & Risk Profile

High-risk items (including children’s toys, pharmaceuticals, auto parts, or electrical goods) incur higher premiums than low-risk items like textiles or stationery.

Annual Turnover

Higher sales volume means more items are in use, increasing potential exposure to financial claims.

Limit of Indemnity

The total amount of coverage you select directly influences policy pricing.

Import & Export Activities

Importing products from overseas (where you assume manufacturer liability under Australian law) or exporting to potentially litigious overseas markets such as the US increases overall policy risk.

Claims History

A clean track record of quality control and zero past claims helps keep your ongoing costs down.

To gauge an accurate price of what you may anticipate paying for product liability insurance, contact our Sydney team for a quote.

Why Choose CIG Insurance

Choosing a broker is really choosing who’s in your corner when something goes wrong. That’s why Australian businesses rely on CIG as their insurance brokers of choice.

20+ Years Protecting Australian Businesses

Two decades of insurance experience means we’ve seen the product defects, supply chain issues, and claims that catch businesses out.

Tailored Advice Over One-Size-Fits-All Policies

We provide personalized advice designed around your specific inventory, suppliers, and distribution scale.

Access to Australia's Top Insurers

We’re not tied to one provider. We source and compare policies across the market to find the right fit at the right price.

Proactive Claims Management

When a faulty product claim or customer injury arises, we don’t hand you a phone number. We actively manage the claim and advocate for your best outcome.

Built for Small to Medium Enterprises (SMEs)

No call centres, no cookie-cutter policies. As Sydney based insurance brokers serving businesses across Australia, we deliver expert advice and tailor every policy to the way your business actually operates.

Product Liability Insurance FAQs

What does product liability insurance cover?

Product liability insurance covers third-party personal injury, property damage, and legal defence costs arising from a product you sell, supply, or manufacture.

Who needs product liability insurance?

Any business making, importing, distributing, or selling physical goods needs this cover to protect against compensation claims if a product injures someone or damages property.

What is the difference between public liability insurance and product liability insurance?

  • Public Liability Insurance covers injury or damage caused by your business activities.
  • Product Liability Insurance focuses on injury or damage caused by a product you’ve supplied.

Do I need public liability insurance as well as product liability?

Yes, but in Australia, insurers almost always sell them combined. Public liability covers operational incidents, while product liability covers harm caused after products leave your care.

Will I pay more to use an insurance broker?

Not necessarily. Brokers leverage market relationships to negotiate competitive premiums and prevent costly coverage gaps often saving you money over standard off-the-shelf policies.

Product Liability Insurance Starts with CIG

Protect your business from the unexpected when products go wrong.

Whether you manufacture, supply, import or sell products, Product Liability Insurance can help protect your business if a product causes injury or property damage. With cover designed around the products you provide and the risks you face, you can keep your business moving with greater confidence.

Protect your business today with tailored protection by speaking to an experienced CIG insurance broker today.

Curious about Product Liability Insurance?

Speak To One Of Our Brokers Today