Product Liability Insurance, what you need to know

Michael Christensen
4 min readDec 15, 2020


If you are a seller of any product or running a business to sell your products locally in the USA or online, you have to claim the product liability insurance crucially. It is nothing but a type of insurance that helps to cover all your legal expenses if any of your customers buy the product that you made, sold, or distributed caused any property damage or injury. If your product supposedly hurts anyone or damages their property, you have to claim product liability insurance. This type of insurance policy helps pay your judgment, legal fees, or settlement. Some persons can take legal action over damage from your business product, even if he or she doesn’t use or buy it.

Need for product liability insurance:

The insurance policy for product liability is the most important mainly for all kinds of contracting and construction businesses. It probably provides financial protection when the customers take legal action over the property damage or personal injury related to their work completion. All product manufacturers, sellers, and also the distributors will be liable for any potential product liability. So, it is crucial to ensure you get rid of this risk. Whether it is the manufacturing defect, design defect, or marketing defect, the product seller, distributor, or manufacturer is liable to give a proper settlement for this damage.

Hiring an insurance company

Once you have decided to get the product liability insurance for your brand, there are several numbers of insurance companies available in the USA to claim it. From among them, it is the responsibility of the product manufacturer, supplier, or distributor to choose the best and leading company. There, you can get an insurance policy of product liability with the general liability policy. It is typically known as product completed operation coverage. But some of the product manufacturers or sellers are in need of getting this insurance coverage outside of their general liability policy. First, you have to select the best insurance agent and make sure your product covers the general liability policy or not. While buying this policy, you will have a certificate of product liability insurance as proof of your insurance plan.

Best insurance company online

If you are looking at the online platform, there you can find huge numbers of insurance companies offering the best liability insurance plans for you. The best and top-rated web-based insurance company helps all product manufacturers or sellers get the real Product Liability Insurance in order to protect your brand. It gives proper protection to your firm against the liability claims or lawsuits regarding the property damage or injury arising from the defective products manufactured, sold, or distributed by your company. The first thing you have to do is that you should need to talk to your legal adviser who will ask for your liability related details. You have to tell only the truth to this legal insurance adviser and he/she will give you the right solution to get rid of it. They will provide you proper guidance on how to get out of the risk of defects or faulty products. This is a unique form of insurance policy that is exclusively designed for the businesses which produce or sell the products.

Product Liability Insurance is for what?

Before obtaining the liability insurance plan for your product, it is crucial to know what all the products you can claim it for are. This product might be any kind of goods sold to businesses or customers from basic products like food and clothing to complex products like medicines and machines. The injured third party might be anyone who comes into direct contact with your sold product such as a user, buyer, or even bystander. If you are running the repair company for damaged products, you must also claim this liability insurance because there is also a chance of damage or injury caused by the repairing product. Some sellers know that they can liable to claim an insurance policy for the damaged product but a few of them don’t. All the sellers should have to familiar that they are always liable to claim the product liability insurance when your buyer experiences any injury or damage due to any particular product brand. The seller is highly responsible to give this settlement to the buyer according to the type of damage or injury they have.

Coverage of Product Liability Insurance

The insurance claims of product liability typically arise from manufacturing defects, design defects, strict liability, and use defects or warning.

·Manufacturing defects are the claims which are related to the products that occurred while any brand product was being assembled or made.

Design defects are actually the claims regarding the product issues present even before it was created.

Strict liability is actually a claim which is based on the lack of negligence but where damage or injury resulted from the proper use.

Use defects or warnings are the claims in which the seller failed to give enough warnings or labels on the proper usage and risks.

Actually, the best liability insurance for any product will cover you in case of the following situations such as injuries related to the product suffered by the bystanders, product injury lawsuits, property damage caused by the defective products, illnesses from the beverages or food which were consumed, wrongful death caused by any product, and also illnesses related to the toxins found in any product.

What are not covered in Product Liability Insurance?

When it comes to the liability insurance policy for any product, it will not actually cover the injuries to the workers which might have happened during the manufacturing process of the product. This insurance plan will also not cover the price of having to recall your product. If you want to claim the amount for recalling your product, it is crucial to go for the specialized insurance policy which is named recall insurance.

Originally published at on December 15, 2020.



Michael Christensen

With more than 20 years in tech — now I am writing about various topics. Affilliate links are added in some articles. Love tech and love to help people.