Types of Insurance


Insurance Help


Log In

Product Liability Insurance

Get business insurance with optimized coverage to meet your exact needs

Or call (646) 844-9933 for advice and customised recommendations.

What is Product Liability Insurance?

Product liability insurance (or Product Recall Insurance) protects your company from claims that a product you manufactured or sold caused physical harm or property damage to someone else's property.

Product Recall Insurance may be offered separately, or included as part of your General Liability Insurance.

Without product liability insurance, your business may be forced to pay for costly general liability claims connected to product faults out of your pocket.

What Product Liability Insurance Is All About:

What Does Product Recall Insurance Cover?

FAQs: Product Recall Insurance

Who is protected under product liability insurance?

Manufacturers Manufacturers get this insurance to protect themselves in the event that a customer sues them over a product. It can be used to help pay for litigation involving design flaws, manufacturing flaws, and other comparable difficulties.

Retailers Even if you weren't directly responsible for a product flaw or other problem, retailers and distributors might be held accountable for damages caused by merchandise. Litigation arising from marketing flaws can also be covered by product liability insurance.

Tradesmen Product recall cover is required for general contractors and other construction and installation specialists in the event that their work results in an accident or property damage after it is done.

How Much Does Product Liability Insurance Cost?

The cost of product recall insurance will depend on several factors such as:

  • Size of your business.
  • Number of products.
  • Extent of protection desired or mandated by state.

To find out how much it will cost you to get Product Liability Insurance, click on the orange button to get a free quote today.

When can you be sued for Product Liability?

Whether you are manufacturing a product or selling someone else’s you can be sued for product liability. Ultimately, you are responsible for the product if a customer is harmed by it regardless of your intention.

What are some claims examples for Product Liability Insurance?

There are many claims that are commonly seen in Product Liability insurance. Tylenol had a big claim back in 1982 when 7 people died because their pills had been tampered with and laced with cyanide. Kellog’s cereal had a big one where a disgruntled employee urinated in some cereal boxes and a video was posted online.

What is Product Guarantee Insurance?

Product Liability is there when a product issue causes injury or illness. Sometimes, a defect can happen that affects products but does not cause injury illness and this is where Product Guarantee insurance comes in.

It covers the cost or repair or replacement of a defective product that causes failure to perform. This is usually due to faulty design or installation.

Does product liability insurance cover problems with software or app?

Software, programs, and other comparable IT and technical items are not covered by product liability insurance. To safeguard against coding errors and software faults, tech business owners should get an errors and omissions insurance (E&O) coverage.

Litigation arising from bodily injury caused by a product is covered by product liability insurance. It would, for example, protect you if your program caused a battery to explode, injuring someone.

Product liability insurance vs. general liability insurance: What's the difference?

These two policies are not the same, despite the fact that they are frequently purchased together.

General liability insurance protects a small business from the most typical types of claims. It covers things like a consumer stumbling in a puddle at your store and breaking their arm (or their phone). It also aids in the settlement of litigation alleging that you harmed a competitor's reputation or duplicated their logo.

Damages resulting from your products or finished services are covered by product liability insurance. Manufacturers, merchants, and contractors, for example, require both forms of insurance.

What Are the “Limits” on a Product Liability Insurance Policy?

The limits on Product Liability Insurance can vary but often are a part of the limits on a General Liability policy.

The most common range from $500,000 - $5,000,000. The exact amount will depend on whether you decide to get basic coverage or opt for advanced coverage.

What Does Product Liability Insurance Not Cover?

Quality and performance issues This insurance does not usually cover quality and performance issues. A consumer cannot cause a product to be recalled based on dissatisfaction alone. It also does not cover waaranties.

Intentional violation Intentional violation of industry best practices or governmental regulations are not covered.

Losses Specifically losses involving a competitor’s product.

Third party liability Third party liability may not be accepted under Product Liability insurance.

Redesign costs May not always incorporate the costs of recall-related advertising or redesign costs

Are You Ready to Get Covered?

Prefer to speak with a CoverWallet consultant? Call

(646) 844-9933