Product Liability Insurance

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

Product liability insurance with Insurance Canopy offers protection for your products—no matter where your business is in the supply chain. We understand your unique needs with customizable product liability insurance options and offer top-rated policies for an affordable price. With over a decade of experience, Insurance Canopy has helped over 10,000 businesses stay protected with product liability insurance.

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Whatever Your Contribution, We’ve Got You Covered

Quick Turnaround | Affordable Policies | Experienced Agents | Customizable Coverage

Any business that imports, produces, distributes, or sells products needs product liability insurance. Insurance Canopy has helped thousands of businesses like yours obtain affordable coverage to protect against lawsuits and meet retail requirements. We have also assisted thousands of businesses get products into stores such as Target, Whole Foods, Ulta Beauty, Petco, Rite Aid, Amazon, Walmart, and countless others—both online and in-store.

See just how affordable protection for your products can be. Submit your application for a product liability insurance quote in less than 10 minutes.

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What is Product Liability Insurance?

Product liability insurance provides financial protection for claims of bodily injury and property damage losses from a product sold, manufactured, or distributed by you or your business. If your business plays a 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 retail product insurance. Without insurance, you could be paying thousands of dollars for legal fees, repais, or medical bills all on your own. You may have to halt business or recall products, and you risk damaging your reputation.

Product liability insurance can protect your small business if a product you sold, produced, or distributed leads to:

  • Property damage
  • Illness
  • Injury
  • Death

View our Product Liability e-Book for additional facts, statistics, and information about product liability insurance.

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Who needs Product Liability Insurance?

If you work with a product at any point in the supply chain, then you need product liability insurance. Whether you handle ingredients, parts, or whole products, you can still be held liable in a claim if the final product causes bodily harm or property damage. Suppliers, manufacturers, distributors, and retailers all face the same liability risks and can benefit from the protection of insurance. See what product liability insurance can do for you below, and learn more about how much product liability insurance may cost in the "Premium Cost" tab.

  • Suppliers
    Suppliers provide suitable materials to manufacturers so they can create a product. If you supply bad materials, a faulty product may end up on store shelves. This can lead to defects which may injury a consumer, damage their property, or cause an allergic reaction. If you are named in a lawsuit, you can face fines and even loss of business.
  • Manufacturers
    One of the most common product liability claims are from manufacturing defects or mislabeled products. Say you create a product that isn’t properly assembled or labeled before being sold. If a customer sustains injuries from using the item, they can name you, the manufacturer, as responsible in a claim. Without product liability insurance, you may have to pay for the customer’s injuries, defending yourself in court, and recalling the product.
  • Distributors
    Distributors are responsible for circulating products to companies who can sell it. You could be held liable if you damage a product in transit that later harms a consumer. Or, if crosscontamintion occurs while delivering products and someone sustains an allergic reaction. It’s your job to ensure the products you are delivering are quality and safe for consumers, otherwise you are at high risk of facing claims.
  • Retailers
    Customers usually come in contact with a product through retailers, making them prime targets in product liability claims. If a product sample or purchased product leads to bodily injury, choking, allergic reactions, or damages their property, you can be liable to pay for medical bills, legal fees, and more. A single claim can damage your reputation, halt business operations, and even lead to store closures.
A woman smiles and holds products in bags that she has purchased from a retailer.
The Importance of Product Liability Insurance for Small Businesses

We live in a litigious society, and the need to protect your business and assets from potential claims and lawsuits is of growing importance. Without product risk insurance, a single claim can cost thousands of dollars and potentially lead to:

  • Product withdrawal
  • Damaged reputation
  • Loss of business relationships
  • Halted or slowed business operations
  • Financial losses
  • And more…

Having the right business product insurance creates a financial safety net so you are prepared when the unexpected occurs. Insurance Canopy is here to be your partner in protecting your products so you can focus on running your business worry-free.

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What Can Product Liability Insurance Protect Me From?

Insurance Canopy’s policy provides coverage for goods or products manufactured, sold, handled, distributed, or disposed of by you and/or your company. We also offer product recall protection in case you need to halt or pause production and issue a recall due to a claim.

An individual may file a product liability claim for an incident such as bodily injury or property damage caused by the use of your product(s). This can include, but is not limited to, the following:

  • Bodily injury such as a burn, cut, or broken bone caused by the materials or design of your product
  • Choking hazard caused by your product
  • Death from an injury or illness sustained by use of your product
  • Fire damage caused by electrical elements in your product
  • Warning or labeling defects in which a manufacturer fails to provide the appropriate warnings on your product

Even if you have strict product testing and carefully monitor product safety, accidents can still occur. Having product liability insurance helps you protect your reputation, lower or eliminate the cost of claims, and keep business operations running smoothly.

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What Products Are Not Covered Under Product Liability Insurance?

While we do try our best to offer you coverage for unique or high-risk products most other insurance companies do not cover, there are some products we cannot insure.

  • Aerosol products
  • Baby products
  • Products requiring a prescription
  • Weapons and firearms, including police and military gear
  • Products intended to be injected
  • Anything containing more than 0.3% THC
  • Products containing illegal drugs or alcohol

If you have any questions or concerns about finding coverage for your product, our experienced agents can help assist you and see if we have a policy for you.

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Are There Additional Coverages Available?

Yes! Insurance Canopy offers a variety of additional coverages to help meet your needs. This allows you to tailor your policy specifically to your business, and keep you from paying for unnecessary coverages. These coverages can increase your policy premiums depending on how many you add and limits needed.

You can add the following coverages to your policy:

  • Inland Marine Insurance, which covers products, tools, and equipment while in transit
  • Cyber Liability Insurance, to help you recover stolen data or funds in the case of a cyber or malware attack
  • Product Recall Coverage, for help covering costs in the case of a recall on your product
  • Additional Insureds, which are facilities and other businesses you work with who can be added to your policy for protection against claims
  • Hired/Non Owned Auto Coverage, a coverage for rented or employee vehicles used to conduct business operations
  • Employee Benefits Liability, for help covering any errors or omissions when administering employee benefits
  • Trade-show Coverage, to help cover you while selling your product at trade shows
  • Occurrence Limits, a policy covering damages or injuries that occurred during the policy period, regardless to when the claim was made

After you submit your quote, an insurance agent will be in touch to go over the details of your coverage. You can then discuss the endorsements and limits you need before finalizing your policy.

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How Much Does Product Liability Cost?

On average, our customers pay between $800-$1400 for their annual premiums.

The cost of product liability insurance is dependent on a few factors. Our application takes into consideration the following common factors:

  • Industry
  • Size of Business
  • Annual Revenue
  • Limits Required
  • Claims History

Read on to know how they each play a part in your insurance quote.

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Industry

Depending on the type of product you design, produce, or sell, your liability policy cost will vary. Some products are riskier to insure than others, and the agent you speak with will likely go over all the details with you. Typically a policy for cannabis business products will cost slightly more than a policy for office equipment products. Riskier products may require higher limits, or other county or state-mandated insurance.

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Business Size

How many employees do you have? Is it just you and a partner running a home warehouse? Or do you own a store with multiple employees? The size of your business will affect how much you pay for product liability insurance.

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Revenue

Our application will ask you about previous annual revenue and you may be asked about projected revenue. Your past sales will impact your liability insurance quote.

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Limits Needed

The limit on your policy is the maximum that your insurance will pay out during any given policy period. Are you looking to meet contract requirements for a retailer? Or are you trying to increase your current insurance limits? Our agents can help you determine the policy limits that meet the needs for retailers or discuss what limits meet your personal/business needs.

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Claims History

Insurance is there for when you need to file a claim. You’re paying for the convenience of not having to deal with the issue on your own. However, if we see you have a long history of filing claims, your insurance may increase in cost. This is because insuring you may mean taking on more risk. The good thing is if your business does not have a history of filing claims then you’ll likely have a lower cost.

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How To Get A Product Liability Quote

You can submit a quote for product liability insurance here on our website. The process is entirely online and can be completed in 10 minutes or less. After you submit a quote, a member of our team will contact you.

When filling out the application, we will ask you for the following information:

  • Businesses contact information
  • Details of the products and/or services you want covered
  • Total gross receipts from all products and/or services
  • Information for your manufacturer, distributor, or supplier
  • Preferred limits of liability
  • Claims history
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Claim Examples

According to a litigation report by Lex Machina, product liability lawsuits in the U.S. federal court system have been steadily increasing since 2015. With the number of claims on the rise, being equipped with the right coverage is essential.

A person uses a gas can to fill up their car with gasoline.
Example #1 - $161,000,000 Claim

After attempting to start a controlled fire, a Blitz gas can exploded in the hands of one Orgeon man. He suffered burns across 45% of his body, and is just one of over 50 people who filed lawsuits against the company. Walmart was named as a co-defendant on several of the cases as they were the biggest retailer of the cans. Had Blitz installed a 5 cent safety device, many of the injuries and deaths may have been avoided. The company ultimately had to pay an estimated $161 million in settlements, with Walmart contributing around $25 million of the amount. Blitz ended up filing for bankruptcy and closing manufacturing plants.

A woman dries her hair with a blowdryer in front of a mirror.
Example #2 - $850,000 Claim

For one young woman, A hair dryer purchased from Amazon almost cost her her home. An electrical failure in the product started a fire in her bedroom that quickly spread to the rest of the house. After suffering from smoke inhalation, property damage, and emotional damage, both Amazon and the manufacturer paid over $850,000 in reimbursements.

Whether you are a supplier or a retailer, you sell online or in-stores, product liability lawsuits can impact any part of the product chain. Are you prepared to spend the money, time, and resources to handle a claim on your own?

Insurance Canopy has helped hundreds of business owners like you navigate through product liability lawsuits and create a plan suited to individual needs. Talk with a qualified agent today to see how product liability insurance can fit into your risk management plan.

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CanopyCares Scholarship

Insurance Canopy is thrilled to announce a new scholarship program for students across the nation. Our CanopyCares program will offer several $1,000-$4,000 scholarships towards a student's tuition. Individuals that meet the following criteria may be selected:

  • First semester freshman with university acceptance
  • 3.0 or higher GPA in high school
  • Enrolled to be a full-time student (12 credit hour minimum)

Apply Now

Product Liability Insurance

Five Things To Know Before You Buy

Questions about Product Liability Insurance

Yes! Our policy combines general liability insurance with product liability insurance to give you the coverage your business deserves. Insurance Canopy can help cover claims from:

  • Slip and fall injuries in the workplace
  • Destruction to property from business operations
  • Bodily harm from your products and possible defects
  • Property damage from products or installation
  • Failure to provide labels or warnings on products
  • Litigation costs and medical expenses
  • And more...
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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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You can submit a quote for product liability insurance here on our website. The process is entirely online and can be completed in 10 minutes or less. After you submit a quote, a member of our team will contact you in 48–72 hours.

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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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When a customer makes a purchase from you, they are expecting to receive a reliable product in return. Failing to provide a safe product may end up in a huge financial loss for you. Even if you are found to be not at fault, the cost of legal fees alone can be detrimental to your business.

According to a litigation report by Lex Machina, product liability lawsuits in the U.S. federal court system have been steadily increasing since 2015. With the number of claims on the rise, being equipped with the right coverage is essential.

An individual may file a product liability claim for bodily injury or property damage caused by the use of your product(s). This can include, but is not limited to, the following:

  • Bodily injury such as a burn, cut, or broken bone caused by the materials or design of your product
  • Choking hazard caused by your product
  • Death from an injury or illness sustained by use of your product
  • Fire damage caused by electrical elements in your product
  • Warning or labeling defect in which a manufacturer fails to provide the appropriate warnings on your product

Even if you have strict product testing and carefully monitor product safety, accidents can still occur. Having product liability insurance offers you


Example #1 - $161,000,000 Claim

After attempting to start a controlled fire, a Blitz gas can exploded in the hands of one Orgeon man. He suffered burns across 45% of his body, and is just one of over 50 people who filed lawsuits against the company. Walmart was named as a co-defendant on several of the cases as they were the biggest retailer of the cans. Had Blitz installed a 5 cent safety device, many of the injuries and deaths may have been avoided. The company ultimately had to pay an estimated $161 million in settlements, with Walmart contributing around $25 million of the amount. Blitz ended up filing for bankruptcy and closing manufacturing plants.


Example #2 - $850,000 Claim

For one young woman, a hair dryer purchased from Amazon almost cost her her home. An electrical failure in the product started a fire in her bedroom that quickly spread to the rest of the house. After suffering from smoke inhalation, property damage, and emotional damage, both Amazon and the manufacturer paid over $850,000 in reimbursements.


Whether you are a supplier or a retailer, you sell online or in-stores, product liability lawsuits can impact any part of the product chain. Are you prepared to spend the money, time, and resources to handle a claim on your own?

Insurance Canopy has helped hundreds of business owners like you navigate through product liability lawsuits and create a plan suited to individual needs. Talk with a qualified agent today to see how product liability insurance can fit into your risk management plan.

Get a Quote!

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