Product Liability Insurance

Product Liability Insurance protects businesses from financial loss stemming from claims of injury or property damage caused by products they manufacture, distribute, or sell. It’s a core component of commercial risk management for any company that puts physical goods into the stream of commerce.

This insurance helps cover legal fees, medical costs, settlements, and court-awarded damages if a product is alleged to be defective or unsafe. Whether the issue lies in design, manufacturing, packaging, or even failure to warn consumers properly, product liability insurance is designed to defend your company and your bottom line.

Even with rigorous quality control, accidents and malfunctions can still happen — and when they do, the financial fallout can be massive. Product-related lawsuits are among the most expensive and frequent in the commercial world. A single incident involving bodily injury or widespread product failure could trigger multi-million-dollar claims, recalls, reputational damage, or even regulatory investigations.

In many industries, product liability insurance isn’t just a smart choice — it’s a contractual requirement for retail partnerships, distributors, and big-box stores. It’s often mandated before launching in certain markets or selling through platforms like Amazon, Walmart, or Target.

Common industries that often require Product Liability Insurance include:

Product Liability Insurance typically covers:

While Product Liability Insurance offers broad protection, it doesn’t cover:

The cost of Product Liability Insurance depends heavily on product type, volume, and where it’s sold. 

To minimize potential claims: