Product Liability Insurance

Name: Product Liability Insurance
Brand: Insurance Canopy
Rating: 4.8 (501 reviews)

You bring the products, we bring the protection.

Home / Product Liability Insurance – 3

Why Do Small Businesses Need Product Liability Insurance?

Regardless of your role in the supply chain — manufacturer, retailer, distributor, wholesaler, or importer — you could face legal action if a product you sell harms someone. Strict liability laws mean you can be held responsible for injuries, property damage, or financial losses even without negligence.

A single lawsuit can drain your business’s finances, disrupt its operations, and even lead to closure. Here’s how product liability insurance can safeguard your business:

A defect in a product you manufacture causes injury, and the customer sues. Your policy covers legal fees and settlement costs.

A major retailer requests proof of insurance. Without it, you risk losing shelf space or account access. Insurance ensures compliance and maintains your reach.

A customer is injured using a product you sold, even though you didn’t make it. You’re still named in the lawsuit, and your insurance helps cover defense fees.

Get covered instantly.

A faulty shipment you distributed causes property damage at multiple locations. Your policy covers the claims by paying for the repairs, keeping your operations running smoothly.

A product you import is mislabeled, leading to a customer’s adverse reaction. Insurance covers the patient’s treatment costs, even if the issue originated with the manufacturer.

What Is Product Liability Insurance?

Product liability insurance helps protect your small business from paying out-of-pocket for claims related to injuries or property damage caused by the products you sell, manufacture, distribute, or import.

Your business has a responsibility to provide safe products to consumers. If a product causes harm — whether due to your mistake or not — the consequences can be severe. You may face legal action or be required to pay thousands in compensation, which could devastate your finances and put your business at risk.

Small businesses often encounter difficulties securing sufficient product liability coverage through home or renters’ insurance. Almost all home or renters’ insurance policies do not cover product-related liability; in fact, most of these policies specifically exclude business-related activities. Our coverage offers the required protections.

What Does Product Liability Insurance Cover?

Product liability insurance covers claims for bodily injury or property damage caused by defective or faulty products (even if you didn’t cause the error).

This includes:

Product injuries
Medical expenses
Wrongful death claims
Legal defense fees

It also provides coverage for online sales and trade shows. Additionally, it includes general liability insurance to protect you from common slips, trips, and falls.

While it’s not legally required, having coverage is a smart move for any business involved in bringing products to market.

What Does Product Liability Insurance Not Cover?

The following items are typically excluded by a product liability policy:

Product recalls (can be added on as recall insurance)
Employee injuries (can be added on as workers compensation)
Professional Liability (available if you offer classes or workshops)
Intentional misconduct or known defects
Intellectual property claims
Discontinued products coverage
Cyber liability & data breach coverage (can be added on as cyber liability insurance)
Commercial auto insurance (can be added on)
Tool, gear, and property in transit (can be added on as inland marine insurance)

Read a full list of our excluded products.

Do your operations fall under an exclusion, or do you have questions about product coverage? Our specialists are here to help you find a solution. Reach out today to explore options and secure the protection you need.

Additional Insurance Coverage You May Need

Depending on your products, business setup, or retail contracts, you may need more than product liability coverage. These add-ons help fill the gaps:

Once you submit your application, an agent will carefully review your details and reach out to discuss your business’s unique needs and recommend the most appropriate coverage options.

Have questions or want to explore your options? Don’t hesitate to contact us — we’re here to help.

How Much Does Product Liability Insurance Cost?

On average, product liability insurance costs between $700 to $3,000 per year. However, your total premium amount depends on your product, sales volume, risk level, and additional coverage types added.

Factors That Impact Your Premium

Business Type – Manufacturers and high-risk industries pay more than online sellers or lower-risk operations
Product Risk – Products like supplements or medical devices may require more coverage
Annual Sales – The more you sell, the more exposure you have
Coverage Limits – Higher limits and added coverage (endorsements) raise your premium
Claims History – A history of claims can raise your rate
Contract Requirements – Retailers or partners like Amazon may require higher coverage limits, impacting your cost

Coverage Risks

Each business is unique, and your premium will be tailored to your specific needs. Credits and discounts are available (upon qualifying) and can be discussed with one of our agents.

Who Needs Product Liability Coverage?

Product liability coverage is essential for anyone involved in the creation, sale, or distribution of a product — not just for manufacturers. Whether you’re designing, manufacturing, packaging, marketing, or selling, you can be held responsible if a product causes injury or property damage.

Don’t assume the manufacturer’s policy protects you. If you’re a retailer, distributor, importer, or private labeler, you’re also at risk. From the moment a product is conceived to when it reaches the consumer, every stage carries potential liability, making product liability insurance crucial along the entire supply chain.

Learn More

Real Businesses We’ve Helped Cover

Here are a few real-world examples of businesses we’ve recently helped insure:

A startup developing wireless medical devices for pediatric patients
A home-based creator 3D-printing flower vases and tabletop toys
A pet brand launching natural supplements and chewables
An importer bringing gourmet sugar and small-batch tequila to the U.S. market
A tool company building air tools for commercial trucks
A specialty retailer selling cooling garments for high-heat environments
A food business manufacturing edible cookie dough and gourmet sauces
A family-owned shop crafting handmade bath bombs and beauty items
A direct-to-consumer brand offering baby sleepwear and accessories

If they needed small business coverage, chances are you do, too. Let’s make sure you’re protected.

Why Choose Insurance Canopy?

At Insurance Canopy, we believe insurance should be easy, accessible, and affordable for educators like you. Our team of U.S.-based licensed insurance agents doesn’t work on commission, so you can rest assured knowing they’re here to help you get the coverage you need. Plus, we have an A+ rating from AM Best, so you know you’re getting top-class coverage.

You're In Good Company With Insurance Canopy

Here's what some of our over 14,700 customers have to say about their experience.

They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.

Evergreen Multiservices
February 2, 2026

Extremely user friendly website, super affordable and very little time needed to apply.

Carl Sari
January 31, 2026

Excellent company, Great service, the best!!!

Claudina Adams
January 15, 2026
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs

Alex
January 5, 2026

Really went the extra mile to find the appropriate coverage for my business.

Daisy B
January 2, 2026

Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!

Andy Anderson
December 22, 2025
Easy. Convenient. Trustworthy. Came thru in a moments notice

Eddie K
December 19, 2025

Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.

Peter Flessas
December 14, 2025

So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs

Yuri Gonzalez
December 11, 2025
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!

Jacob Serrano
December 6, 2025

Great experience, quick and easy to understand with what I needed for my business. Highly recommend!

FrankLynn Rae
October 28, 2025

Very helpful customer service! Prompt, punctual, effective! No bots or long waits to get assistance.

Maria Ciccone
October 19, 2025
Canopy insurance has made affordable, band insurance needed for major venues. Thank you for your fast and easy service Stan Zizka's Del Satins

stan zizka
October 5, 2025

Getting a vendor policy was quick and fairly priced compared to other quotes.

Kristine Fullerton
October 3, 2025

Thank you so much

Steve Monreal
July 11, 2025
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More

Jamie Calaway
July 4, 2025

Very easy & quick experience. We got insurance in no time with no hassle. Thank you!

Robert Earnest
July 4, 2025

I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More

Deloris Pacheco
June 27, 2025
Very easy to renew policy

Elyce Nissinoff
June 18, 2025

Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.

queenkiam
June 18, 2025

Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More

Anthony Burgess
June 18, 2025
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More

Michael Riley
June 18, 2025

Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend

Jay Solis
June 18, 2025

What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!

Masha Rusanov
June 18, 2025
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More

Gretje Angell
June 18, 2025

Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.

David Fox
May 18, 2025

They can help.you with the right Insurance you need, and the lowest price

Alvaro Baltazar
May 18, 2025
everything is excellent

Radames Martinez
May 18, 2025

Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!

Ishan Arvin
May 18, 2025

Affordable for dance & yoga folk. Thumbs up!

Maia Claire
May 18, 2025

They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.

Evergreen Multiservices
February 2, 2026
Extremely user friendly website, super affordable and very little time needed to apply.

Carl Sari
January 31, 2026
Excellent company, Great service, the best!!!

Claudina Adams
January 15, 2026
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs

Alex
January 5, 2026
Really went the extra mile to find the appropriate coverage for my business.

Daisy B
January 2, 2026
Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!

Andy Anderson
December 22, 2025
Easy. Convenient. Trustworthy. Came thru in a moments notice

Eddie K
December 19, 2025
Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.

Peter Flessas
December 14, 2025
So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs

Yuri Gonzalez
December 11, 2025
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!

Jacob Serrano
December 6, 2025

Common Questions about Product Liability Insurance

How much product liability insurance do I need?

The amount of product liability insurance you need depends on the nature of your business, industry risks, and any contractual requirements. The industry standard is typically $1 million per occurrence and $2 million in total (aggregate) coverage.

However, you may need higher coverage if your business involves high-risk products like medical devices, electrical appliances, or powered hand tools. Additionally, retailers, distributors, and online platforms like Amazon may have specific coverage limits required for partnerships.

We offer higher coverage limits — such as $2 million per occurrence with a $2 million aggregate, or $3 million per occurrence with a $3 million aggregate — based on your specific needs. If your business requires more than $3 million in coverage, we may be able to create a customized solution on a case-by-case basis.

Unsure how much coverage you need? Our team is here to help you find the right fit. Give us a call!

Is product liability included in general liability?

Yes, a general liability insurance policy typically includes some product liability coverage. General liability covers bodily injury and property damage caused by your business operations, including harm caused by your products.

But if you sell high-risk items, need higher limits, or work with retailers that require specific terms, you may need a standalone product liability policy like the one we offer. Always review your policy details to ensure you have adequate protection.

A COI can also be called an ACORD.

Do I need product liability insurance if I only sell products online?

Yes. Even if you only sell products online, you still need product liability insurance. E-commerce platforms like Amazon and Walmart often require sellers to carry coverage, and you can still be held liable if a product you sell causes injury or property damage.

Whether you’re a dropshipper, private label seller, or reseller, you can face lawsuits for defective products, misleading instructions, or missing safety warnings. Product liability insurance helps protect your business from costly legal claims, even if you never physically handle the products you sell.

Is product liability only for manufacturers?

No, product liability insurance isn’t just for manufacturers — it’s crucial for any business involved in bringing a product to market. Whether you sell, distribute, package, import, or brand a product, you can be held responsible if it causes harm.

Many assume a manufacturer’s policy will cover them, but that’s rarely true. If a product you sell leads to injury or property damage, you could face costly lawsuits, recalls, or lost business opportunities. Manufacturer policies often won’t protect you, so having your own coverage is key.