Frequently asked questions about product liability insurance

You are not required by law to purchase product liability insurance, which is usually included in a general liability insurance policy. However, commercial landlords and clients may require you to purchase general liability insurance to fulfill the terms of a lease or contract. Proof of general liability coverage is also required to apply for certain professional licenses.

Product liability insurance covers risks related to products your business sold or manufactured. That includes bodily injury, wrongful death, and property damage caused by a product. Read more about what product liability insurance covers.

In states with strict liability laws, a business can still be held responsible for damages even if it did nothing wrong. In terms of product liability, that means retailers that sell defective products could be held liable for injuries or property damage caused by the product. That’s why product liability insurance is a key policy for any business that deals in products.

Product liability insurance does not cover the cost of recalling a product. However, it will help pay for legal costs if your product is recalled after a customer is injured. To cover product recalls, you’ll need to add a product recall insurance rider to your general liability policy.

Product liability insurance protects your business from customer injuries and property damage caused by defective products. That includes design defects, manufacturer defects, and marketing defects.

To get product liability insurance, use Insureon's easy online application to compare quotes from top-rated carriers for a general liability policy that includes this coverage. You'll need to share some basic information about your business, including where it’s located, the number of employees, and estimated revenue for the upcoming year.

In most cases, we’ll deliver multiple quotes from our carrier partners as soon as you finish the application. Look them over and choose the right policy at the best price for your business. A licensed Insureon agent is available to assist you throughout the process.

Once you purchase a policy, you can access your account and obtain a certificate of insurance, which is a formal proof-of-insurance document you need to show when you sign certain contracts or apply for professional licenses. Typically, it takes between 24 and 48 hours to complete the process and gain insurance for your business.

Our certificates of liability insurance are digital. We can email you one as soon as your policy is activated. You can also access your certificate online by logging into your Insureon account.

Businesses that sell or manufacture products benefit from product liability insurance (usually part of general liability insurance). That includes:

• Cannabis businesses
• Food and beverage businesses
• Manufacturers
• Personal care, beauty, and cosmetology businesses
• Retail businesses
• Wholesalers and distributors

Product liability claims follow the same process as general liability claims. Simply call your insurance provider. Your agent will ask you to provide a description of the incident and basic information such as your name, the business name, and your policy number. Your insurance agent can guide you through the process and provide answers to any additional questions.

It’s easy to add insurance at a later date. Your insurance agent can adjust the coverage amount on your policy, and provide assistance if you need to purchase additional policies.

If you cancel your policy early, you run the risk of paying more for coverage down the road. Insurance companies typically charge higher rates to businesses that start and stop coverage. You also leave your business exposed to potential risks if you cancel your coverage.