Product liability insurance protects manufacturers, distributors, wholesalers, and retailers against claims arising from products that cause injury or property damage. If a product you make, sell, or distribute is alleged to be defective — in design, manufacturing, or labeling — you can be held liable regardless of fault. Product liability coverage is included in most general liability policies as 'products-completed operations,' but businesses with significant product exposure may need standalone or enhanced coverage.
Manufacturers, food producers, consumer goods companies, importers, distributors, retailers, supplement companies, cosmetics manufacturers, toy makers, electronics manufacturers, and any business in the supply chain of a physical product sold to consumers or other businesses.
Partially. Standard GL includes products-completed operations coverage, but with shared limits. Businesses with significant product exposure — manufacturers, importers, food producers — often need higher dedicated product liability limits or a standalone product liability policy.
Product liability costs vary widely: $500–$3,000/year for low-risk products (office supplies, clothing) to $5,000–$25,000+ for high-risk products (food, supplements, children's products, electronics). Importers typically pay more than domestic manufacturers.
Yes. Retailers and distributors can be held liable for products they sell, even if they didn't manufacture them. If the manufacturer is overseas, bankrupt, or uninsured, you may be the only party a plaintiff can sue.
Get a free quote or call (321) 206-8035.