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Maryland product liability insurance guide

Maryland expressly includes importers and businesses holding themselves out as manufacturers in its statutory definition of “manufacturer.” A separate seller defense may protect a sealed or unaltered downstream seller only if it meets each statutory condition; it disappears in listed situations such as an unidentifiable, unreachable, insolvent, or immune manufacturer, or a causative express warranty. The general civil-action period is three years from accrual unless another Code provision sets a different period. These rules help identify operations and claim facts to discuss with a broker; they do not determine policy coverage. 1,2

What Is Product Liability?

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. Read the national Product liability guide.

What to Watch for in Maryland

  • Importer and brand roles

    Section 5-405 treats an importer, or an entity that holds itself out as the manufacturer, as a manufacturer for this seller-defense statute. Map who imports, brands, designs, assembles, or specifies products; ask whether the application lists each role and product line accurately. 1

  • The downstream-seller defense has conditions

    A wholesaler, distributor, retailer, or regular lessor or bailor may assert a defense only if it proves the product was acquired and resold sealed or unaltered, it lacked knowledge, reasonable care would not have revealed the defect, it did not cause the defect through design or specifications, and it did not causally alter, assemble, or mishandle the product. This is not blanket immunity for distributors. 1

  • Manufacturer and warranty exceptions

    The seller defense is unavailable if the manufacturer is outside Maryland process, insolvent, unidentifiable, immune, or a judgment cannot be enforced against it, or if the seller’s causative express warranty applies. Preserve manufacturer identity, service and solvency information, warranty language, and handling records for claim review. 1

  • Do not treat three years as a universal claim cutoff

    The general civil-action rule is three years from accrual, but it yields when another Code provision supplies a different period. Identify the alleged claim and accrual facts with counsel rather than applying this general rule to every warranty or specialized claim. 2

Who Regulates Insurance in Maryland

Maryland Insurance Administration

The Maryland Insurance Administration licenses producers and insurers, reviews rates and forms, and investigates complaints about insurance companies and producers. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premiums less returned premiums when Maryland is the insured's home state; excludes risks of Maryland and its political subdivisions When Maryland is the insured's home state, the tax is 3% of gross premiums less returned premiums, except insurance of risks of the State or a political subdivision. For policies effective on or after July 21, 2011, Maryland taxes the entire premium and the broker must charge the tax in addition to premium. Maryland's property and casualty guaranty corporation excludes surplus-lines policies. 6,7

Providers With Documented State Licenses

These providers publish a national listing for Product liability; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Maryland. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 14

Questions to Ask Before You Buy in Maryland

  1. Which products do we design, assemble, import, private-label, distribute, sell, lease, or bail, and are those roles described separately in the application?
  2. Can we produce the chain-of-custody, sealed-packaging, inspection, alteration, assembly, warning, and handling records for each product version?
  3. If a seller invokes Maryland’s statutory defense, can we identify the manufacturer and document its service-of-process status, solvency, warranty terms, and ability to satisfy a judgment?
  4. How do the proposed form’s products-completed-operations terms, limits, defense-cost treatment, and exclusions apply to our documented product roles? Ask the broker to confirm from the form; Maryland’s liability statute does not answer those policy questions.

Product Liability in Maryland: FAQ

Does Maryland’s seller defense automatically protect an importer? 1

No. Section 5-405 defines an importer as a manufacturer for this section, while its conditional defense is for a seller other than a manufacturer. The facts and product role matter. 1

Is every Maryland product claim subject to a three-year deadline? 2

No. Section 5-101 states a general three-year period from accrual unless another Code provision supplies a different period. Identify the claim category and any specific rule. 2

Product Liability in Other States

Other Coverage in Maryland

Sources

  1. Maryland Code, Courts and Judicial Proceedings § 5-405. Maryland General Assembly; 2026 official statute PDF, § 5-405(a)–(d), pp. 1–3. Accessed 2026-09-28.
  2. Maryland Code, Courts and Judicial Proceedings § 5-101. Maryland General Assembly; Official statute PDF, § 5-101. Accessed 2026-09-28.
  3. Maryland Insurance Administration. Maryland Insurance Administration; Homepage and consumer contact. Accessed 2026-09-28.
  4. Insurance License Lookup. Maryland Insurance Administration; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Maryland Insurance Administration; State complaint process and contact. Accessed 2026-09-28.
  6. Md. Code, Insurance §3-324. Maryland General Assembly; Insurance §3-324(a)-(b), (d)-(f): government-risk exclusion; 3% of gross premiums less returns; entire-premium home-state basis from July 21, 2011, with tax charged in addition. Accessed 2026-09-28.
  7. Maryland Insurance Article (2026). Maryland General Assembly; Insurance §9-303(5), (7): surplus-lines and unauthorized insurers excluded from property and casualty guaranty subtitle; 2026 Insurance Article PDF. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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