Product Liability Insurance

Designed to protect your business and help you get into retail stores.

Product liability insurance protects your business against third-party bodily injury and property damage claims arising out of your products’ exposure to the market. Planning on expanding your business? We’ve provided Product Liability Insurance to thousands of business owners, assisting them in breaking into stores such as Target, Whole Foods, Ulta Beauty, Petco, Rite Aid, Amazon, Walmart, and countless others, both online and storefront.

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Got questions? Our experienced agents have answers. 888.600.0894

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We Cover Thousands of Products.

Whether you are an importer, manufacturer, wholesaler, or retailer, Insurance Canopy provides product liability insurance for a plethora of products in both the consumer and industrial industries. Check out some of our specialities below:

Don’t see your product listed? Don’t worry, our experienced agents may still be able to tailor a policy for your specific needs.
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Leverage Our Experienced Professionals

With more than a decade of experience in the insurance industry, our experienced agents seek to understand the details of your business, help you answer specific insurance questions, and provide you with a quick quote turnaround so you can focus on more important things like growing your business.

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Expand with Excess Liability Insurance

Need higher limits to get into a specific retailer? Our experienced team can help assess the specific requirements and provide you with a free quote customized to your needs. With excess liability insurance, you’ll be able to meet retailer requirements and open up new revenue streams for you to expand your business.

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Understand Retail Requirements

Navigating retailer contract requirements in relation to insurance can be confusing. We can help you understand what you’ll need to break into the retail space. With years of experience reviewing the insurance portion of retail contracts, our agents can help you understand what your business needs to meet these requirements.

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Product Liability Insurance

What You Need To Know

FAQ

Product liability insurance provides protection against bodily injury and property damage losses arising out of some defect in products sold, manufactured, or distributed.

This means that if your business plays part in the supply chain of a product, whether it be in sales, distribution, installation, or manufacturing, you should be aware of the necessity for product liability insurance.

Even if you believe your business to be faultless, you could still be sued over a product defect in an item you sold or even find yourself responsible for legal defense costs in a suit. A customer could also claim that your business provided insufficient warnings or inaccurate instructions related to your product leading to a recall.

If a product injures a customer or is labeled incorrectly, the manufacturer, the distributor, the designer, and the retailer can all be held liable for the resulting damages as well as recall costs.

Product liability insurance protects you if a product you sold or produced leads to:

 

  • Property damage
  • Illness
  • Injury
  • Death
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Each year in the United States, thousands of injuries are reportedly caused by defective products. In the unfortunate event that one of your products causes another person harm and they file a claim against your business, the courts may hold you responsible for the incurred costs of the injury.

Product liability claims can be in regard to a product causing property damage, causing someone illness, causing someone to be injured, or even death.

You can be exposed to a product liability claim if your business operations include:

  • Manufacturing component parts
  • Manufacturing, importing, or distributing products
  • Retailing products to consumers
  • Wholesaling products to retailers

Under the definition of “Strict Liability,” a person who is injured by a product may be entitled to compensation for their injuries without showing that the manufacturer or seller of the product was actually negligent.

This is where Insurance Canopy comes in.

You can be confident that your company will have the coverage it needs with a policy tailored specifically to your business operations.

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Our policy provides coverage for goods or products manufactured, sold, handled, distributed, or disposed of by you and/or your company. Your policy will also offer protection from providing, or failure to provide, warnings or instructions on your products.

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Yes. If you are manufacturing, selling, handling, distributing, or disposing of a product, you need insurance. This type of coverage is designed to respond to lawsuits or claims made against manufacturing defects, design defects, defective warnings, and instructions. No matter how careful you are or how involved you are with your business, there’s always a chance of mistakes happening.

Product liability insurance is designed to protect your business from two kinds of claims:

  • Lawsuits, accidents, or negative reactions arising from products sold, distributed, or manufactured
  • Third-party claims such as bodily injury and property damage losses arising out of a defect in the product your business sold, manufactured, or distributed

Insurance Canopy helps small business owners assess the specific risks associated with their industries and then customizes liability coverage to meet their needs.

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The amount of coverage you need may vary based on the niche your product is in. The industry standard is a $1 million dollar per occurrence limit with a $2 million dollar general aggregate limit. Depending on your sales, assets, or contractual insurance requirements our licensed agents can include excess and umbrella policies as well.

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The cost of your specific policy will vary based on a few factors, such as industry, sales revenue, your organization’s size, and more. Our licensed agents will assess your risks and create a customized insurance policy that fits your small business needs.

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Insurance Canopy is proud to offer our insureds the option to add a product recall insurance endorsement to their policies.

Product recall insurance protects your business against the costs associated with a product recall. A product recall typically occurs when a product is found to be unsafe or harmful to consumers. This could be a beauty product found to have toxic ingredients or food found to have bacterial contamination. When a product is found unsafe to the public it must be pulled from shelves and recalled from those who have already purchased it.

The costs associated with this process can be extremely high and you’ll want to be sure you’re properly insured against this possible risk.

Our product recall endorsement can be added to a product liability insurance policy for as low as $250 a year. Be sure to direct any questions to your agent.

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When doing business with a product at any stage of the supply chain of that product, you could be held liable for any claims that the product caused bodily harm or damage.

If you’re a supplier, manufacturer, distributor, or retailer of a product, you face the same risks as everyone else in the supply chain. We’ll describe some examples below to explain more.

Suppliers
As a supplier, you’re in charge of providing the necessary materials to a manufacturer so they can begin producing a product. Let’s say the materials you supply are found to be substandard and unsuitable for the job at hand. The materials could cause a ripple effect resulting in the consumer buying a faulty product that might break or cause injury upon use. You could be named in the lawsuit filed by the customer who injures themselves using the product.

Manufacturers
Say you create a product that isn’t properly assembled before being sold. When that product reaches your customers and they begin to get injured from using the item, they’ll not only name the store who sold it in the lawsuit they file but you’ll be named as well since you are the manufacturer. Product liability insurance could help protect you.

Distributors
As a distributor, you’re responsible for circulating the product to everyone who can sell it. This means that—in a lawsuit concerning product liability—you could be named and held liable for injuries that occur to the end user of the product who was harmed.

Retailers
When you sell something directly to a consumer and it ends up causing them harm or injury, you can be held liable for selling an item that causes an individual harm. This means that in a liability lawsuit you’d be sued and likely have to pay for associated costs.

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Insurance Canopy is dedicated to providing manufacturers, importers, and distributors with customizable policies for consumer, commercial, and industrial goods. We’re here to help you assess the specific risks associated with your industry and customize the product liability coverage your business needs.

We have the ability to provide insurance solutions for small businesses in the most niche industries carrying a wide range of products. Our covered industries range from vitamins and dietary supplements, beauty products, and vape and e-cig equipment, to emerging CBD topical and ingestible products and cannabis goods.

With our product knowledge and expertise, you can rest easy knowing that someone is taking care of your insurance needs.

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