Product Liability Insurance FAQ
Answers about product liability insurance for injury and damage claims caused by products you make, import or sell.
Basics
What Is Product Liability Insurance?
It is liability coverage for claims that a product you make, distribute, or sell caused bodily injury or damage to someone else’s property.
What It Covers
Does General Liability Include Product Liability?
Often, commercial general liability includes products-completed operations coverage, but a policy can limit or exclude particular products or exposures.
Does Product Liability Cover Amazon Sellers?
A policy may cover a seller’s products, but Amazon-specific requirements and actual coverage terms must both be checked.
Does Product Liability Cover Defective Products?
It may cover a third-party injury or property-damage claim caused by a defective product, but usually does not insure the product’s own repair or replacement.
Does Product Liability Cover Design Defects?
It may respond to a covered third-party injury or property-damage suit alleging unsafe design, subject to exclusions and policy limits.
Does Product Liability Cover Ecommerce?
It may cover product claims from online sales if those products and the business’s distribution role are insured.
Does Product Liability Cover Imported Products?
It can, if the importer and imported products are insured and the claim falls within the policy’s territory and terms.
Does Product Liability Cover Legal Fees?
Often, a covered CGL suit triggers a defense obligation, but the insurer, covered allegations, and treatment of defense costs depend on the policy.
Does Product Liability Cover Manufacturing Defects?
Potentially, if the alleged defect caused covered bodily injury or third-party property damage and no exclusion applies.
Does Product Liability Cover Product Recall?
Usually, third-party injury or property-damage claims and the business’s own recall costs are separate coverage questions.
Does Product Liability Cover Products Manufactured Overseas?
Potentially, if the insured product, supply-chain role, and relevant claims territory are within the policy’s coverage.
Does Product Liability Cover Warning Defects?
It may cover a third-party injury claim alleging inadequate instructions or warnings, subject to policy terms and exclusions.
What Does Product Liability Insurance Cover?
It may cover covered claims alleging a product caused bodily injury or third-party property damage, subject to the policy’s terms and exclusions.
Who Needs It
Who Needs Product Liability Insurance?
Businesses that design, manufacture, import, distribute, or sell physical products should assess it because each role can face product claims.
Comparisons
Product Liability vs. General Liability: What’s the Difference?
Product liability addresses certain injury or property-damage claims tied to products; general liability is broader and can include premises and other third-party risks.
Product Liability vs. Product Recall Insurance: What’s the Difference?
Product liability concerns third-party injury or damage claims; recall coverage may address the business’s own costs of withdrawing products.
Cost
How Much Does Product Liability Insurance Cost?
There is no single price for every business; premiums depend on product and risk details, so compare quotes on matching terms.
Buying Coverage
Product Liability Insurance for Amazon Sellers: What Should You Check?
Check both the policy’s product coverage and Amazon’s current documentation requirements, including insured name and additional-insured wording.
Product Liability Insurance for Ecommerce: What Should You Check?
Ecommerce sellers should confirm the policy covers every product, sales channel, business entity, and territory they use.
Product Liability Insurance for Manufacturers: What Should You Check?
Manufacturers should check that the policy describes their products and operations and covers applicable completed-operations claims.
Related Coverage
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