Mid-market insurance

Insurance for computer hardware and peripherals companies

Reviewed by the Apex broking team · Last reviewed 2026-11-06

Computer hardware and peripherals company insurance is the commercial programme for businesses that make, assemble, refurbish or distribute computers, servers, peripherals and office electrical equipment. It matters because one battery or power supply fault can lead to fire damage claims, a recall and lost stock at once.

Part of: IT and technology business insurance

In short

Hardware manufacturers, assemblers, refurbishers and distributors usually need products liability that reflects where their goods are sold, product recall, stock and goods in transit or stock throughput cover, and business interruption that extends to key suppliers. Firms that configure, image or build to a customer's specification may also need technology PI. In the UK, importers and own-branders can be liable as producers under the Consumer Protection Act 1987, and anyone placing electrical equipment on the market has WEEE producer obligations. Underwriters focus on battery and power supply controls, supplier quality and export territories.

What insurance does a computer hardware company need?

The exposures are shaped by what physically happens to your products. A laptop battery, a power supply unit or a charging dock that overheats can cause fire damage to a customer's office or home, and in the worst cases injury. That makes products liability, and the territorial scope of that cover, the core of the programme. Product recall sits alongside it, because a defect found across a batch can mean withdrawing thousands of units even if nobody has been hurt.

The second group of exposures is stock and supply chain. Hardware businesses hold high value, theft-attractive stock that moves constantly between factories, ports, warehouses, resellers and end users. Stock throughput or goods in transit cover, plus business interruption that responds to a fire at a key supplier or a component shortage caused by insured damage, often matter as much as liability. Employers' liability, fleet and management liability complete the programme, with technology PI where you configure or build to specification.

Main exposures and the cover that usually responds

Exposure	Cover that usually responds
Battery, charger or PSU fault causes fire at a customer's premises	Products liability, subject to territory, any battery or lithium conditions and the limit
Defect found across a production batch, units withdrawn from sale	Product recall or product guarantee cover, bought separately
Theft or damage to stock in warehouse, in transit or at a reseller	Property, stock throughput or goods in transit
Fire or flood at your own site stops assembly or dispatch	Business interruption, with an indemnity period that reflects lead times
Fire at a key contract manufacturer or component supplier	Business interruption with a customers' and suppliers' extension, if named or included
Imaging, configuration or build to spec goes wrong, customer loses money	Technology PI or errors and omissions
Customer data left on returned or refurbished devices	Cyber or PI, depending on the wording
Staff injury in assembly, test or warehouse operations	Employers' liability, minimum £5 million
Delivery vans and engineers' vehicles	Motor fleet
Exports by sea or air	Marine cargo, and products liability that includes the destination territories

Employers' liability is compulsory under the Employers' Liability (Compulsory Insurance) Regulations 1998, which set a minimum of £5 million for any one occurrence.

The rules that shape the exposure

Producer liability. Under section 2 of the Consumer Protection Act 1987, liability for damage caused by a defective product can fall on the producer, on anyone who puts their name or brand on it, and on whoever imported it into the United Kingdom to supply in the course of business. Importers of own-brand peripherals and refurbishers who rebrand units should assume they carry a producer's exposure. Claims under Part I are subject to a ten year longstop from the relevant time.
WEEE. Government guidance on EEE producer responsibilities treats manufacturers selling under their own brand, rebranders and commercial importers as producers. Producers placing 5 tonnes or more must join a producer compliance scheme, smaller producers can register directly as small producers, and failing to register is an offence. This is a regulatory obligation rather than an insured risk, but underwriters may ask about it as a sign of compliance maturity.
Product safety. The General Product Safety Regulations 2005 require products to be safe in normal or reasonably foreseeable use, and government product safety guidance expects a manufacturer that finds a safety risk to act, including contacting affected consumers.
Connectable products. The consumer connectable product security regime in force since 29 April 2024 excludes desktop, laptop and tablet computers without cellular capability unless intended for children under 14, but other connectable consumer accessories may be in scope. Check each product line against the rules.

Illustrative examples

Illustrative example 1: docking station fire

An own-brand docking station imported from an overseas factory overheats and causes a fire in a customer's office. The distributor is treated as the importer and brand owner. Products liability is likely to respond to the property damage claim, subject to the policy terms, and the business then faces a decision on recall that its liability policy will not usually fund. See a product recall scenario.

Illustrative example 2: component shortage after a supplier fire

A fire at the factory producing a key circuit board halts a server assembler's output for four months. Whether business interruption pays depends on whether the supplier is covered under a suppliers' extension, the sub-limit and the indemnity period.

Illustrative example 3: refurbished laptops with old data

A refurbisher resells corporate laptops that were not properly wiped. The original owner complains about personal data appearing in third party hands. Cyber or PI may respond depending on the wording, and data sanitisation records become central evidence.

What underwriters usually want to see

Product list with turnover by category: computers, servers, peripherals, power and charging products, and refurbished units.
Who designs and who manufactures, with factory audits, test reports and conformity marking for imported goods.
Battery and power supply controls: supplier certification, incoming inspection, storage and charging arrangements in your warehouse.
Sales split by territory, especially the United States and Canada, and whether sales are direct or through distributors.
Contract terms with resellers and customers, including indemnities and liability caps.
Stock values by location, peak values, security and sprinkler or detection details, and transit patterns.
Recall plan, traceability by batch or serial number, and complaints and returns data.
Data sanitisation standards for returned and refurbished equipment.

Common mistakes

Assuming the overseas factory's insurance protects you. As the UK importer or brand owner, claims are likely to come to you first.
Buying products liability that excludes the US and Canada while selling there through a marketplace or distributor.
Expecting products liability to pay for a recall. Recall costs usually need their own cover.
Setting stock sums insured on average values rather than peak seasonal values.
Leaving key suppliers off the business interruption extension or keeping a short indemnity period despite long component lead times.

When to review your programme

You launch an own-brand range or start importing directly rather than buying from UK distributors.
You add battery-powered or charging products to the range.
You start exporting, especially to North America. See importer and exporter insurance and marine cargo.
You add configuration, managed services or software, which can bring in PI and cyber exposures. Larger contracts may need excess layers for tech PI and cyber.
You change warehouses, move to a third party logistics provider or significantly increase peak stock.

The electronics manufacturers insurance page covers component-level exposures, the IT and technology business insurance hub covers the wider sector, and our insurance programme review checks limits, territories and extensions together.

Apex arranges products liability, recall, stock and wider commercial programmes for hardware businesses; a broker reads every enquiry.

Sources

Frequently asked

What insurance does a computer hardware distributor need in the UK?

Usually products and public liability, stock and goods in transit or stock throughput cover, property and business interruption, employers' liability and motor fleet where you run vehicles. Many distributors also need product recall cover and, if they configure or install equipment, technology PI. Importers and own-brand sellers should check their products liability carefully because they can be treated as the producer.

Am I liable for a faulty product made by an overseas factory?

Possibly. Under the Consumer Protection Act 1987, liability for damage caused by a defective product can fall on the person who imported it into the UK for business supply and on anyone who brands it as their own, as well as the manufacturer. Your products liability policy is usually the first line of protection.

Does products liability cover a product recall?

Usually not. Products liability responds to injury and property damage claims by third parties. The cost of withdrawing, replacing or destroying products, and notifying customers, normally needs separate product recall or product guarantee cover, subject to the terms.

Do lithium batteries affect hardware insurance?

They often do. Underwriters commonly ask about battery sourcing, certification, storage and charging arrangements, and some apply conditions or specific terms to battery-powered products and stock. Good evidence of supplier testing and safe storage usually helps the submission.

Do WEEE rules apply to computer importers?

Government guidance treats commercial importers of electrical and electronic equipment into the UK as producers, along with brand owners and some overseas distance sellers. Producers must register each year, either directly as a small producer or through a producer compliance scheme, depending on the tonnage placed on the market.

Mid-sized business? Have your programme reviewed

Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.