What Is Product Liability Insurance & How Can Coverage Help

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A great thing about running a business is seeing the progression of your product line and working with products that keep your customers coming back for more. Not many business owners think about what can go wrong because they are so dedicated to creating a product that is safe to use and something that will satisfy their customers. However, there’s a chance of something going wrong in the production process and your business could be found liable. Luckily, with product liability coverage, you have a financial safety net and can have peace of mind while operating. We’re here to answer, “What is product liability insurance?” and give you an overview of how coverage can help. Someone holds a small jar of jelly product.


Product liability insurance is designed to respond to product defects, such as design, manufacturing, or mislabeling that causes third-party bodily injury/property damage. While managing a thorough quality assurance strategy is useful, it may not always catch mistakes and those instances can lead to third-party experiencing negative consequences.


May Fulfill Retailer Requirements You may be working towards locking in a retail contract or maybe you already have one in the works! One of the requirements retailers will ask for is product liability insurance. By including this coverage, you can fulfill an important requirement and include them as an additional insured. An additional insured is a person or organization that is included in the policy via endorsement. If you were to face legal action, the third-party may want to include the retailer as well and the policy should cover them if they are not at fault.
You can also check out our Insurance Glossary for a comprehensive list of insurance terms that you may not be familiar with.
At Insurance Canopy, we have more than a decade of experience placing coverage with several retailers, such as Target, Whole Foods, Ulta Beauty, Petco, Rite Aid, Amazon, Walmart, and so many more! Designed to Respond to Legal Action Let’s say your skin care product causes a customer to experience an allergic reaction and a second-degree burn. This unfortunate situation leads to them staying at the hospital to recover and work with medical professionals. However, the ordeal is far from over and you are hit with a lawsuit. The customer is suing you for emotional and physical trauma that they sustained after using your product. It’s hard to imagine something like this happening because you take the time to make sure your products are up to standard. However, mistakes can always happen and may lead to you paying a substantial amount of money to make up for it. Product liability insurance is designed to respond to claims you are legally liable to pay for and can help you safeguard your assets. Designed To Provide A Safety Net You have spent a significant amount of time and money building up your endeavor. Doesn’t your hard work deserve to be protected? One third-party claim could be a headache to deal with on your own and could lead to you experiencing some financial strain to cover. With product liability insurance, you gain a financial safety net that responds to incidents relating to your product and gives you a back-up plan. If you ever need to file a claim, we have a team of licensed agents ready to help through the process and give you an update on the status of your claim. A business owner applies for insurance on a laptop.


To get started and get your product liability quote, fill out our online application. Your product liability insurance quote will be based on a variety of factors, such as the industry you’re in, the location, revenue, claim history, coverage limits, and more. Our team will be able to provide your quote within 48-72 hours. Get Your Product Liability Insurance Quote

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