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What Is Product Liability Insurance?

Product liability can cover claims that a product you make, import, distribute or sell injured someone or damaged property. If your business handles products, describe every role in the supply chain and ask how the quote treats product damage and recall costs.

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What Does Product Liability Insurance Cover?

A defect claim can name several businesses along the supply chain, from the manufacturer to the retailer. 3,1,5

Product liability can protect your business from covered claims that a defective product you make, distribute or sell caused injury or damage. 1,2,3,4

Defective Products and Roles in the Chain

Describe where your business sits in the supply chain. Designing an appliance, manufacturing a component, importing the finished item and selling it in a shop are different roles. Include each role you perform so the quote reflects how the product reaches the customer. 3,1,5

General Liability and Completed Work

Product-liability protection may be part of general liability as products-completed operations or a stand-alone policy; confirm which contract you are offered. 3,4,5 Separate injury or damage involving products that have left your possession from harm caused by your completed work. 4,5

Who Needs Product Liability Insurance?

Consider this if you make, import, distribute or sell products. Your role in the supply chain affects the coverage you need to discuss. 3,1,4 6,3

Product Liability Insurance Coverage Examples

What happened

A Customer Says Your Product Injured Them

A customer alleges that a product you sold caused an injury.

How coverage may help

Product liability may address the claim. Your role in making or selling the product, the product itself and the policy terms all matter. 1,2,3,4,6

What happened

You Need to Take a Product Back

Your team finds a product problem and decides to withdraw affected stock from customers.

How coverage may help

Product liability doesn't automatically pay the cost of a recall. Product recall coverage may help with the withdrawal expenses if the event meets its terms. 1,2,3,4,5

How Do You Compare Product Liability Insurance Coverage and Costs?

Your Product and Recall Expenses

Ask how the quote treats damage to your own product and claims that it failed to perform as expected. 5,4 Ask whether the quote excludes withdrawing or recalling products; product-liability protection does not automatically pay recall expenses. 5,4,3

Limits and Product Communications

Compare the products-completed-operations aggregate with the general aggregate and ask whether defense expenses reduce either limit. 4,5 Discuss your product instructions, warnings and marketing, which can all matter in a product-liability claim. 3,5
Comparison pointWhat to ask
Products-completed-operations aggregateHow much is available after products leave your possession or work is completed?
General aggregateHow much is available for other covered liability claims in the period?
DefenseDo defense expenses reduce those limits?
Instructions and warningsHow does the quote treat manuals, labels and marketing claims about the product?
4,5 3,5

What Do You Need for Product Liability Insurance Quotes?

Products and Distribution

Prepare product descriptions, your role, sales and where the products are used or sold. 3,1,4

Testing, Complaints and Prior Losses

Gather testing, quality-control, complaints, warranty, lawsuit and prior-loss information for the eligibility and terms discussion. 6,3
PrepareAsk the broker
Products, role, sales and marketsWhich product lines and supply-chain roles will the quote cover?
Testing, quality and claim recordsWhich testing, complaint, warranty, lawsuit and prior-loss records does the insurer need?
3,1,4 6,3

Product Liability Insurance: Key Terms in Plain English

Products-Completed Operations

Coverage concerning products that have left your possession and work that has been completed. 4,5

Products Aggregate

The overall products-completed-operations limit, which should be compared with the general aggregate and defense terms. 4,5

Frequently Asked Questions About Product Liability Insurance

Does Product Liability Pay for a Recall?

Not automatically. Withdrawal and recall expenses can be excluded even when product-injury liability is insured. 5,4,3

Is Product Liability Part of General Liability?

It may be included as products-completed operations or offered as a standalone policy. Confirm which arrangement you're buying. 3,4,5

Do Retailers and Distributors Need to Consider Product Liability Insurance?

Yes. Product-liability questions can involve retailers and distributors as well as manufacturers, component suppliers and packagers. Describe your role in getting the product to the customer when comparing coverage. 3,1,5

Can Instructions or Warning Labels Lead to a Product Liability Claim?

Yes. Instructions, warnings and marketing can be part of a product-liability claim. Include those materials in the coverage discussion rather than focusing only on how the product is made. 3,5

What Is Product Liability Insurance?

It protects manufacturers, distributors, and sellers against covered claims that their products injured someone or damaged property.

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Does General Liability Include Product Liability?

CGL often includes products-completed-operations coverage, but product restrictions and limits may leave specific sellers exposed.

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Does Product Liability Cover Amazon Sellers?

Possibly, if the policy insures your products and meets Amazon’s current requirements; platform documentation does not guarantee product coverage.

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Does Product Liability Cover Defective Products?

Potentially, for covered third-party injury or property damage caused by a defect; the product’s repair or replacement usually is not covered.

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Does Product Liability Cover Design Defects?

Potentially, for covered injury or property damage caused by an alleged design defect; redesign and recall costs are separate.

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Does Product Liability Cover Ecommerce?

Online sales may be covered when the policy insures each product, entity, and distribution role.

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Does Product Liability Cover Imported Products?

Yes, if the policy covers the importing entity and products, and the claim fits its territory and terms.

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Does Product Liability Cover Legal Fees?

Often, for defense of a covered CGL suit; pre-claim advice and regulatory responses may fall outside the duty to defend.

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View all 20 questions

What Coverage Is Related to Product Liability Insurance?

  • What Is General Liability Insurance?

    General liability can protect your business when a customer or visitor claims you caused injury or damaged their property. It suits businesses serving customers or working on their premises; your own building, tools and stock need property coverage.

  • What Is Product Recall Insurance?

    Product recall insurance can pay specified costs to locate and withdraw a product after a covered problem. It fits businesses that could face recall logistics; product liability does not automatically pay those costs, so compare the trigger and covered expenses.

  • What Is a Business Owner’s Policy?

    A BOP may suit an eligible small business that wants property, liability and lost-income protection together. If you also need auto, workers’ compensation or professional liability, plan for separate coverage.

Product Liability Insurance Guides by State

Which Insurance Providers Offer Product Liability Insurance?

  • AIG

    AIG Aviation Product Liability

  • Alliance Risk

    Alliance Risk arranges product liability insurance.

  • Amelia Risk

    Amelia Risk arranges product liability insurance for consumer-product businesses.

  • Beazley

    Beazley offers product liability insurance for middle-to-large life-sciences organizations.

  • Berkshire Hathaway Specialty Insurance

    BHSI lists primary products and completed-operations liability as a casualty product.

  • CFC

    CFC offers product liability within its life-science and nutraceutical policies.

  • CNA

  • Coverdash

    Coverdash lists product liability in its Excess & Specialty catalog with a quote route.

  • Embroker

    Embroker lists product liability insurance for companies that produce, distribute or sell products.

  • Founder Shield

    Founder Shield lists product liability insurance.

  • Gallagher

    Gallagher arranges product liability insurance.

  • Harper

    Harper includes product liability in its coverage directory.

  • HUB International

    HUB International arranges product liability insurance.

  • Lockton

    Lockton arranges product liability insurance.

  • Markel Insurance

    Markel products liability

  • Newfront

    Newfront lists product liability among its casualty placement coverages.

  • Relm Insurance

    Relm lists product liability insurance for placement through brokers.

  • StartupInsurance.ai

    StartupInsurance.ai arranges product liability insurance for startups.

  • USI Insurance Services

    USI arranges product liability insurance.

  • Vouch

    Vouch lists product liability among the core coverages in its technology-company programs.

  • WithCoverage

    WithCoverage includes product liability in its consumer insurance-program review services.

Updated .

Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. Editorial policy. To suggest a correction, contact Spot with the page URL and supporting source.

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