Liability insurers' concerns about the risks surrounding mobile phones could be compounded by an EU decision to make product liability compulsory.

Under the EU's product liability Directive, the producer of a defective product is responsible for paying compensation to those harmed. Insurance can be bought to offset the liability, but is not mandatory. The EU is due to review the Directive this year.

Royal & SunAlliance technical insurances manager Phil Bell said the EU had considered introducing compulsory financial guarantees into recently-created Directives to ensure compensation could be paid.

Because of this he feared the EU might consider making product liability insurance compulsory.