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US exposure
US product liability is the legal responsibility that businesses along a product’s chain of manufacture and supply can bear for harm the product causes. It matters for insurance because UK product liability policies commonly exclude or sub-limit exports to the USA and Canada, so a business can be selling there with less cover than it thinks.
Part of: Public liability with US jurisdiction
In short
US product liability claims are brought under state law, mainly in tort, and can be based on negligence, strict liability or breach of warranty; there is no federal products liability statute. Liability is generally treated as strict: if a defect caused the harm, care taken in making the product is no answer. Courts recognise three kinds of defect: manufacturing, design, and failures to warn or instruct. Any business in the chain can be sued, from component maker to retailer. The UK equivalent, Part 1 of the Consumer Protection Act 1987, is also strict but narrower in who is liable.
Last reviewed 7 October 2026 by the Apex commercial team.
Cornell’s Legal Information Institute (LII) defines products liability as “the legal responsibility imposed on any or all parties along the chain of manufacture of any product for damage caused by that product”. It is derived mainly from tort law.
Three points shape the US position for a UK exporter:
LII lists the elements a claimant typically proves against a commercial seller: the defendant sold the product, as a commercial seller; the claimant was injured; the product was defective when sold; and the defect was an actual and proximate cause of the injury.
US courts sort defects into three categories. The table follows LII’s descriptions; the tests applied vary between jurisdictions.
| Defect | What it means | How it is usually argued |
|---|---|---|
| Manufacturing defect | The product departs from its intended design and is more dangerous than consumers expect. Only some units are affected. | For strict liability, the claimant shows the item did not follow the manufacturer’s design and the flaw arose before it left the manufacturer’s control. |
| Design defect | The product was made as designed, but the design itself makes it unreasonably dangerous. Every unit shares the flaw. | Courts use a consumer expectation test, a risk-utility test, or a mix. LII notes a claimant may need to show a safer, economically feasible and practical alternative design. |
| Marketing defect (failure to warn) | Improper instructions, or a failure to warn users of latent dangers. | The argument is that adequate instructions or warnings would have avoided the harm. |
For a UK exporter, the third category is easy to overlook. Instructions, labels and warnings written for the UK market may be judged against what a US court expects, so a product that is well made and sensibly designed can still face a warnings claim.
US liability is not confined to the company that made the finished article. LII lists the manufacturer of component parts at the top of the chain, the assembling manufacturer, the wholesaler and the retailer at the bottom. A claimant will often sue several of them at once.
The examples below are illustrative, not real cases:
Because claimants and defendants can be spread across many states, LII notes that claimants often forum shop. In Bristol-Myers Squibb Co. v Superior Court of California, 582 U.S. 255 (2017), the Supreme Court limited that ability. Where a claim can be heard is a question for US lawyers on the facts.
Part 1 of the Consumer Protection Act 1987 (England, Wales and Scotland) also imposes liability without proof of fault, but the structure is different.
| US (as LII describes it) | UK: Consumer Protection Act 1987, Part 1 | |
|---|---|---|
| Source of law | State law, mainly tort; no federal statute | One statute, s.2 to s.9 |
| Who is liable | Any or all parties in the chain, from component maker to retailer | s.2(2): the producer, anyone holding themselves out as producer by putting their name or mark on it, and the importer into the UK. s.2(3): a supplier only if it fails to identify its own supplier or a producer when asked |
| What counts as a defect | Manufacturing, design or marketing (warnings) defect | s.3(1): safety “not such as persons generally are entitled to expect”, judged on all the circumstances, including marketing, instructions and warnings (s.3(2)) |
| Several defendants | Commonly sued together | s.2(5): liability is joint and several |
| Notable defence | Varies by jurisdiction | s.4(1)(e): the state of scientific and technical knowledge at the relevant time (the development risks defence) |
The practical difference for a UK business is reach. Under the 1987 Act, a retailer that is not the producer, own-brander or importer, and names its supplier when asked, is not liable under that Act. In the US, every business in the chain is a potential target, and contracts often pass the risk upstream to the UK manufacturer through indemnities.
Most UK product liability cover sits inside a combined public and products liability policy. US and Canadian sales are one of the first things an underwriter looks at, and wordings commonly handle them in one of these ways, subject to the policy terms:
| Approach | What it means for you |
|---|---|
| USA/Canada exports excluded | No cover for claims arising from products you knowingly export there. Indirect exports may also be caught, depending on the wording. |
| Covered with a sub-limit | US claims share a lower limit than the policy headline figure, often with defence costs counted inside it. |
| Covered on declared US turnover | Cover applies if you declare US sales accurately. Undeclared growth can create a problem at claim time. |
| Separate US-specific policy or excess layer | Used for larger US exposures, sometimes alongside a US-admitted policy for a US subsidiary. |
Look too at how the policy treats punitive damages, whether defence costs erode the limit, and whether product recall is covered (it usually needs a separate policy). If your products are sold widely, read our page on US class actions too.
If this affects your business, these are the points a broker will ask about:
Speak to a broker
Products cover for US exports, placed by a named broker
Send us your current schedule, or tell us about the property if you are arranging cover for the first time. Or leave your number and a named broker will call you back, usually the same working day.
Apex Insurance Brokers is an independent insurance broker based in Bristol, established in 2009 and authorised and regulated by the Financial Conduct Authority. We are not tied to one insurer: we work with over 30 markets, including Lloyd’s syndicates through wholesale brokers, and every client has a named broker who handles the placement, mid-term changes, certificates for clients and the renewal.
It means a manufacturer or seller can be liable for injury caused by a defective product without the claimant proving carelessness. If the product was defective when sold and the defect caused the harm, the care taken in making it is irrelevant. US claims can also be based on negligence or breach of warranty, depending on the state.
Yes, it can be named in a US claim. US product liability can reach any business in the chain, including component makers and foreign manufacturers. Whether a particular US court can hear a claim against you is a legal question on the facts, so take US advice. Make sure your insurance responds to US claims before you start selling there.
Not always. Many UK wordings exclude USA and Canada exports, or cover them only up to a lower sub-limit, sometimes with defence costs inside that limit. Some cover them if you declare your US turnover. Read the territorial clause and any USA/Canada endorsement, and tell your broker how much you sell there.
Both impose liability for defects without proof of fault. The 1987 Act names who is liable: the producer, own-branders and the importer into the UK, with suppliers liable only if they can’t identify who supplied them. It defines a defect as safety below what persons generally are entitled to expect. US law is state-based and can reach every business in the chain.
It is a US product liability claim alleging that instructions were inadequate or that users weren’t warned about hidden dangers. It can succeed even where the product was well made and well designed. UK exporters should check that instructions and warnings suit the US market, not just the UK one.
Apex arranges public and products liability for UK businesses selling into the US. Tell us how your products reach US customers and we’ll check where your cover stops. Or call 0117 325 0027.
Start your quote Call 0117 325 0027Apex 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. Cover is always subject to the insurer’s acceptance and the policy terms, and this page does not guarantee that cover will be available or on what terms.
