What Is Product Liability Insurance?

semi truck pulling up to port with shipping containers
You have heard of faulty products hurting customers, such as a product line being mislabeled and sending many customers to the hospital. This instance is something that you hope will never occur and that’s why you set up a thorough quality assurance. You care about keeping your customers safe from harm. In some cases, your quality assurance strategy may not be enough and someone could get hurt from a product that you designed, manufactured, or sold. Regardless of where you fall in the supply chain line, there’s always a risk of something going wrong, and Product Liability Insurance can help. You may be wondering, “What is product liability insurance, anyway?” Well, we are here to give you a rundown of this useful business coverage and how Insurance Canopy can help. A worker stands among products in a warehouse.


Product Liability Insurance is coverage designed to respond to third-party property damage and bodily injury claims stemming from a product defect. Product defects can include the following:
  • Manufacturing Defects: You put your trust in the manufacturing process and depend on things running smoothly. Unfortunately, that’s not always the case. For example, the office chairs you produce were poorly manufactured and the pieces weren’t bolted on correctly. A customer using the chair gets injured and blames you.
  • Design Defects: Products are capable of causing injuries and property damage. For example, a battery overheating and causing a fire.
  • Mislabeling: By including a label, you give customers the needed product information upfront, such as directions and ingredients. It’s possible that the product label doesn’t contain the necessary information and a customer experiences an allergic reaction.
The risks are out there and outside variables that out of your control could lead to legal trouble. Depending on the severity of the claim, you could face third-party bodily injury or property damage claims you are legally liable to pay for. Every business (big or small) can face a third-party claim! For example, Owens Corning Corp paid out $1.2 billion to settle product liability claims that their building materials caused mesothelioma cancer and death. By carrying insurance, you have coverage in place that can serve as a financial safety net for your assets and give yourself some peace of mind while operating. Now that you have a better understanding of this coverage, let us explain how Insurance Canopy can help and give you a brief overview.


Insurance Canopy provides insurance coverage for business owners in various industries and works with top-rated carriers. We are proud to offer Product Liability Insurance for thousands of products and cover the following:
  • Medical Devices
  • Beauty & Cosmetics
  • Vitamins, Supplements, and Nutraceuticals
  • Food Products
  • Pet Supplies
  • And More!
Our licensed insurance agents have more than a decade of building policies based on the unique needs each business faces. Perhaps you need additional coverage, such as cyber liability insurance, excess liability, or a product recall endorsement. We have agents that can assess the risks and are happy to help. All you need to do is fill out our online application and our team can deliver a quote to you within 48-72 hours. On top of that, we have worked with business owners who need product liability coverage to fulfill their contractual obligations with retailers, such as Target, Whole Foods, and Amazon. So, what are you waiting for? The risks are out there. The best thing you can do is be proactive and cover your business! If you have any questions or want to learn more about our coverage, feel free to contact us. Learn More About Product Liability Insurance

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