Product Liability Insurance

Product Liability Insurance for Manufacturers, Distributors, and Importers

Product Liability Insurance for Products you design, manufacture, market, import, and distribute. Designing, manufacturing or distributing a product is an exciting venture. However, in our complicated world simply selling a product has become a cause for concern, and moreover a product liability exposure. So much so that many wholesale and retail operations and venues require that you, the manufacturer, distributor or wholesaler have products liability insurance on the items you develop. Additionally, as a retailer of these products, you may be held responsible if there is an injury. Specifically one that results out of use of a product you manufacture, import, or sell.

CLICK HERE FOR A FREE PRODUCT LIABILITY INSURANCE QUOTE

What is Product Liability Insurance?

Product Liability Insurance Coverage covers the policyholder in the event that a suit arises out of the use of the insured’s products. This can be loss to personal property, business property, bodily injury or death. These items may be clothes, toys, tools, building materials, electronic devices or even pet food or supplies.

What does Product Liability Insurance Protect You From?

Liability insurance is designed to protect your business against losses. Even if you are negligent or liable for damage, injury or loss to another’s property. Typically, damages, legal defense fees, and settlement charges are paid by the insuring company. This would happen when a claim is filed against your business as a result of a Products Liability Suit.

Product liability insurance will cover you for suits that arise out of damage or injury. This would be from use of a product that the insurance policy holder manufactures or sells. One key factor is that having a product liability insurance policy in place will provide legal defense for your company if it is sued. This applies whether it was a result of bodily injury or property damage that arises out of use of your product.

Bodily Injury that may Arise Out of Use of Your Product

Product Liability Insurance may pay the affected person or firm for the cost of care, the loss of services and restitution for death that results from an injury.

Property Damage

In the event your business or product causes damage to, or causes the loss of use of someone’s property. Property damage liability coverage may pay for the value of the physical damage to the property; or the loss of use of that property.

Who Should Have Product Insurance?

Anyone that is responsible for the design, manufacture, sale or distribution of a component or end user product. This applies to any business or individual that manufactures his own product. Even if the product’s manufacturing is subcontracted out buy another operation. Even if that manufacturing operation is overseas. A small sampling of the classes we specialize in are: Food Product Liability Insurance. Cosmetic & Skincare Product Liability Insurance. Dietary Supplement Product Liability Insurance. Fitness Product Liability Insurance. Electronic Cigarette Product Liability Insurance. and Beer, Wine & Spirit Product Liability Insurance.. If you are an Amazon Seller, they require Amazon Sellers Insurance

How much does Product Liability Insurance Cost?

A Product Liability Insurance Policy is rated on several factors:

• What are the products you need insurance coverage for?
• Who manufactures your products and where are they produced?
• How many of your products will be distributed into the market and how?
• What are your products used for and who will be using them?
• How long are your products intended to last?
  
• What are the products you sell made of?
• How clearly defined are the usage instructions, directions and guarantees and or warranty that are provided with the product?
• What claims does the manufacturer or distributor make about the product, either in writing, demonstration or in media?

What is the Average Cost of Product Liability Insurance?

Product liability costs are much like any other liability insurance product. So, they can vary from $.05 per $1,000 in sales to over $50.00 per $1,000 in sales. There no real average rate because they are based on the specific type of product you manufacture, retail or market. Therefore, what one company is paying for product liability insurance means nothing to another if they are selling different products.

There are some products that pose very little potential to cause harm or damage and there are others that have a higher propensity to be risky, and therefore carry higher premiums. Furthermore, as sales increase in a certain product classification, the cost per $1,000 in sales goes down.

What types of companies need Product Liability Insurance?

Essentially any product that is put into market or sold in any venue should be insured. Some examples are food, clothing, tools, energy products, furniture, stationary goods, beverages, baked products, luggage, pet items, heating & cooling apparatus, electronic goods, vehicles, toys (especially).

Click here for a List Of Business Classes we Offer Products Liability For.

A small sampling of the classes we specialize in are:Food Products.Cosmetic & Skincare Products.Dietary Supplements .Fitness Products .Electronic Cigarettes . andBeer, Wine & Spirits.

Think you are immune to a Product Insurance Claims?

Everyone does! However, the product that was assumed to be the most harmless, that almost everyone used on their baby had one. Over Baby Powder. Johnson & Johnson suffered a Product Insurance Claim for over $3.5 Billion, with an expected 40,000 more claims having been filed as of January of 2023. ^{1 2}Similarly, Fitness product manufacturer, Peloton, had claim expenses of $19 Million due to a product liability claim.³

Because every product is different, underwriting a Product Liability Insurance policy is complicated. If you need a quote on Product Liability Insurance Coverage, please complete a product liability Insurance quote request . As many people have already found out, Castle Rock Insurance Agency is the best stop for a quote for their Insurance. We are the low cost solution for your Product Liability Insurance Policy. Castle Rock Agency currently offers Product Liability Insurance Policy Coverage in California, CA, Connecticut, CT, Florida, FL, Illinois, IL, Maryland, MD, New York, NY, New Jersey, NJ, Pennsylvania, PA, Texas, TX, West Virginia, WV, Virginia, VA as well as the rest of the nation.

¹ https://fortune.com/2022/08/11/johnson-johnson-stop-selling-talc-based-baby-powder-cancer-lawsuits/
² https://www.npr.org/2022/09/19/1123567606/johnson-baby-powder-bankruptcy-lawsuits
³https://abcnews.go.com/Business/peloton-agrees-pay-19-million-fine-treadmill-recall/story

Product Liability Insurance