Product Liability Insurance
Hong Kong, a global trade hub with over HKD 4.8 trillion in total trade value in 2024 (Hong Kong Trade Development Council), relies heavily on the safe production, import, and sale of goods. Product liability insurance safeguards businesses—manufacturers, distributors, and retailers—against financial losses from claims that their products caused injury, illness, or property damage. For example, a defective appliance causing a fire could lead to lawsuits costing HKD 500,000 or more. With Hong Kong’s stringent consumer protection laws and active legal environment, this insurance is essential for businesses of all sizes, from SMEs to multinational corporations, ensuring they can operate confidently while protecting their reputation and finances.
Saving You Time & Money While Shopping For Insurance
Get Free Insurance Quotes
Fill out our inquiry form, and we'll identify the perfect policy to suit your requirements and lifestyle.
Emergency Hotline: +852 2530 2530
Product Liability Insurance Insights
Critical for Trade
Hong Kong’s role as a re-export hub (over 98% of exports are re-exports) makes this insurance vital for businesses handling goods, as defects can trigger claims locally or internationally.
Risk Mitigation
With over 1,200 product-related complaints reported annually to the Consumer Council (2024), this insurance helps businesses manage legal risks and maintain customer trust.
Broad Protection
Covers legal fees, settlement costs, and damages if a product causes bodily injury (e.g., food poisoning from contaminated goods) or property damage (e.g., a faulty gadget sparking a fire).
Product Liability Insurance FAQs
Product liability insurance protects businesses from claims that their products caused harm or damage. It’s essential for manufacturers, importers, distributors, and retailers in Hong Kong, especially in high-risk sectors like food, electronics, or toys.
It covers claims for bodily injury (e.g., illness from defective food), property damage (e.g., a faulty device causing a fire), and sometimes economic losses, plus legal defense costs and settlements.
Premiums vary by industry, product risk, and revenue, typically ranging from HKD 5,000-20,000 annually for SMEs to HKD 100,000+ for large manufacturers or high-risk products like pharmaceuticals.
It’s not legally required, but many retailers, distributors, and international buyers demand it as a contract condition. Hong Kong’s Sale of Goods Ordinance also holds businesses liable for defective products, making coverage prudent.
Notify your insurer within 7-14 days via their portal or hotline, providing details of the claim (e.g., customer complaint, injury report), sales records, and evidence of the defect. Claims are typically processed in 3-6 weeks.
Some policies include product recall costs (e.g., retrieving defective goods), but this may require additional coverage. International claims are covered if the policy includes global jurisdiction, critical for Hong Kong’s export-driven businesses.
General liability covers broader risks (e.g., slip-and-fall accidents at a store), while product liability specifically addresses claims from defective products causing harm or damage, offering targeted protection for goods sold or distributed.
