Product Liability Insurance
If your business makes, sells, or distributes a product, you have product liability exposure. One claim — regardless of fault — can generate defense costs and damages that threaten everything you've built.
Every product you put into the market carries liability that follows it long after the sale.
Product liability claims can arise at any point in the supply chain — the manufacturer, the distributor, the wholesaler, and the retailer can all face exposure for the same product defect. Product liability insurance covers bodily injury and property damage claims arising from products you manufactured, sold, distributed, or even just handled.
Three types of defects drive most product liability claims: manufacturing defects (something went wrong in production), design defects (the product was inherently unsafe as designed), and marketing defects (failure to warn consumers about known risks). Each type of claim has its own legal theory and its own exposure profile.
Product liability coverage is typically included within a Commercial General Liability (CGL) policy as the 'products-completed operations' coverage part — but the limits, exclusions, and endorsements vary significantly by industry, product type, and carrier. We make sure your program is built to match your actual product exposure.
What this coverage does for you
- Covers bodily injury and property damage caused by your products
- Applies to manufacturers, distributors, wholesalers, and retailers
- Includes defense costs — often the largest component of a product claim
- Covers manufacturing defects, design defects, and failure-to-warn claims
- Products-completed operations coverage included in standard CGL programs
- Standalone product liability available for high-risk or specialty categories
What product liability covers.
Coverage applies to claims arising from your products — including products you no longer make, sell, or distribute.
Manufacturing Defects
Claims that a specific unit left the production line in a defective condition — different from how it was designed to be made. Coverage applies even if the defect was caused by a supplier's component.
Design Defects
Claims that the product was inherently unsafe as designed — even if manufactured exactly as intended. These claims often involve the entire product line rather than a single unit.
Failure to Warn
Claims that the product lacked adequate instructions or warnings about known risks. Marketing defect claims are among the most common product liability theories — and often the most defensible with proper labeling.
Distributor & Retailer Exposure
Even businesses that don't manufacture products can face claims as sellers or distributors in the supply chain. Product liability covers your position in the chain regardless of where the defect originated.
Completed Operations
Covers bodily injury or property damage that occurs after your work is complete — for example, a contractor's completed installation that later causes damage. This is the completed operations half of the products-completed operations coverage part.
Recall Cost Coverage
Standard product liability does not cover recall costs, but recall expense endorsements and standalone product recall policies are available for businesses with significant recall exposure — food manufacturers, consumer goods companies, and medical device makers.
Common questions.
Yes — standard CGL policies include a 'products-completed operations' coverage part that covers bodily injury and property damage from your products and completed work. The question is whether the limits are adequate for your product exposure and whether there are exclusions relevant to your specific product category.
Food and beverage, pharmaceuticals, medical devices, children's products, power tools, automotive components, and chemicals carry the highest exposure. But any business that manufactures or sells a tangible product has some level of product liability risk.
Standard CGL product liability does not cover the cost of recalling a product from the market. Recall expense coverage is a separate endorsement or standalone policy. If your product category has recall risk — especially food, consumer goods, or medical products — we'll address that exposure separately.
Generally yes — product liability covers claims arising from your product regardless of which component caused the defect. You may have a right of contribution against the supplier, and your policy may have subrogation rights. We'll make sure your program is structured to address supply chain risk properly.
Product liability claims can be extremely expensive — bodily injury claims involving serious injury or death can result in multi-million dollar verdicts or settlements. Defense costs alone often run into six figures even on claims that are ultimately won. Adequate limits are essential, and umbrella coverage is strongly recommended for businesses with significant product exposure.
Protect your products. Protect your business.
Whether you manufacture, distribute, or retail products, we'll build the right coverage program for your supply chain position and product risk profile.