What is Product Liability Insurance?

Product liability insurance protects businesses that manufacture, distribute, or sell physical products. When a product allegedly causes bodily injury or property damage, the entire supply chain can be held responsible. This coverage pays for legal defense and settlements when product-related claims arise.

If you make, sell, or distribute physical products, product liability exposure is part of your business risk.

What Does Product Liability Cover?

Product liability covers claims arising from defective products, including manufacturing defects, design defects, and failure to warn. It covers bodily injury (a product injures someone), property damage (a product damages other property), and the legal defense costs regardless of whether claims have merit.

The Supply Chain Risk

Even if you didn’t manufacture a defective product, you can still be sued. Retailers and distributors face product liability claims too. If you sell products made by others, you need to verify their insurance and consider your own product liability coverage.