Product Liability Insurance
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.
Coverages we place
- Bodily injury claims from defective products
- Property damage caused by your products
- Design defect allegations
- Manufacturing defect claims
- Failure to warn or inadequate labeling/instructions
- Legal defense costs for product claims
- Product recall expense (with endorsement)
- Worldwide product liability coverage (where available)
Who needs this 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.
What drives your premium
- Product type (food, supplements, children's products cost more)
- Annual product revenue and volume
- Distribution channels (retail, online, wholesale)
- Manufacturing location (domestic vs. imported)
- Product testing and quality control programs
- Claims and recall history
- Target market (consumer vs. B2B)
Common exclusions
- Known product defects that the insured failed to address
- Product recall costs (unless endorsed — recall coverage is separate)
- Contractual liability beyond standard hold harmless
- Products still in your possession (not yet sold/distributed)
- Professional services related to the product (E&O territory)
- Pollution from products (environmental liability)
Frequently asked questions
Isn't product liability covered by my general liability?
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.
How much does product liability insurance cost?
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.
Do I need product liability if I only sell other companies' products?
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.
Related coverage
Get a free quote or call (321) 206-8035.