Coverage for what you make or sell

Product Liability Insurance

Product Liability Insurance covers claims that a product your business made, distributed, or sold caused injury or property damage. If a defective or dangerous product harms someone, you can be sued anywhere along the supply chain, even if you didn't make it, so it's essential for anyone who puts products in customers' hands.

Who needs Product Liability?

Manufacturers of any physical product
Wholesalers and distributors
Retailers (yes, even if you didn't make it)
Importers of foreign products
E-commerce sellers
Food and beverage producers

What's covered

Manufacturing Defects

Products that are flawed due to errors in the manufacturing process.

Design Defects

Products that are inherently dangerous due to their design, even if manufactured correctly.

Failure to Warn

Inadequate instructions or warnings about proper use and potential dangers.

Legal Defense

Attorney fees and court costs to defend against product liability lawsuits.

Settlements & Judgments

Compensation paid to injured parties up to your policy limits.

What's not covered

Intentional harm or fraud
Product recalls (may require separate coverage)
Professional services (covered by Professional Liability)
Breach of warranty claims (sometimes)
Damage to the product itself
Known defects you failed to address

Examples by industry

Health & Beauty

A skincare product you sell triggers an allergic reaction; product liability covers the injury claim.

Food & Restaurants

A packaged item your bakery sells causes illness due to a labeling error; product liability covers the claim.

Cleaning & Maintenance

A cleaning solution you produce and sell harms a customer's surfaces or skin; product liability responds.

Professional Services

A branded product your firm sells is blamed for a defect; product liability covers the resulting claim.

Retail & E-commerce

A product you sold but didn't make injures a customer; product liability covers your defense as the seller.

Transportation

A part you distribute fails and causes damage; product liability covers the claim against you.

Technology

A hardware device you manufacture overheats and damages property; product liability covers the claim.

Home Services

A building material you fabricate and sell fails; product liability covers the damage claim.

Creative & Media

Branded merchandise you produce injures a buyer; product liability covers the resulting claim.

Real Estate

A product sold through your property-services arm is blamed for harm; product liability responds to the claim.

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Part of the Knack guide

Learn Product Liability alongside every other coverage in our full guide.

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