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Product Liability Insurance

Protects your business if one of your products causes injury or damage to a 3rd party. If you make or sell retail products, your company could be liable for the damages that may result from customer use.

What is Product Liability Insurance good for?

Product liability insurance protects your business against legal liability for claims for bodily injury or property damage arising out of those products. It's designed to help protect your business by ensuring that you don't have to pay legal, court costs or compensatory damages.

Who is Product Liability Insurance for?

  • manufacturers
  • distributors
  • wholesalers
  • importers

Why would I need Product Liability Insurance?

Product liability insurance protects your business against legal liability for claims for bodily injury or property damage arising out of those products. It's designed to help protect your business by ensuring that you don't have to pay legal, court costs or compensatory damages.

Liability protection is critical for the manufacturers, distributors, wholesalers and importers involved throughout the chain of commerce. We  provide primary and excess product liability solutions for many types of risks—from paper goods, furniture and fixtures to firearms, chemicals and swimming pool equipment.

We attempt to tailor coverage that works for many different types of risks. We remain as committed as ever to delivering the strong, customized coverage essential to effectively manage long-tail, product-related exposure.

What does Product Liability Insurance cover?

  • Basic coverage on ISO-based forms
  • Flexible manuscript forms and endorsements
  • Products only forms available
  • Multi-year policy terms available
  • Both occurrence and claims-made coverage triggers available
  • Retentions as low as first-dollar coverage for severity-driven risks
  • Self-administration of claims within a self-insured retention for qualified policyholders

What does Product Liability Insurance not cover?

In product liability tort, the burden of proof can vary case by case.  This is generally due to the fact that there are many claims and counter-claims available for the plaintiff and defendant of a product liability lawsuit, each with their respective burden of proof.
In such torts, the plaintiff is tasked normally tasked with finding fault with the defendant's product, while the defense is tasked with attributing blame for the injury to the plaintiff's negligence or misuse.  Generally, for every theory of recovery in products liability, there is an appropriate standard defense.  Product liability is a well-rehearsed field of tort, and is more tightly-constructed than other fields of personal injury and tort.

What does Product Liability cost?

Product liability insurance is typically bundled into a Commercial General Liability package will vary greatly depending on the risk of each type of product. The risk is determined by the type of product, the amount of revenue derived, how it’s marketed to consumers, and what safety measures are in place. Items like fireworks or guns will have a significantly higher risk factor than clothes or bedding.

The average cost of product liability insurance for products in a low-risk category varies around $0.25 per each $100 in revenue. For example, if you sell $500,000 worth of goods each year, your product liability insurance costs would be $1,250 (or 0.0025 * $500,000). Certainly, your actual costs could be substantially higher or lower depending on the type of product you design, manufacture, or sell and the annual revenue generated for your business.

Why buy your Product Liability insurance from InsureCert?

Easy

We’ve made it easier than ever before to complete the purchase and get coverage. How easy? We don’t even need to see equity ownership or financial statements from you.

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Affordable

As a digital company, InsureCert passes the savings for unnecessary administration on to you—for the most competitive price you’ll find anywhere.

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Complete

Protect your startup with the broadest coverage in the industry. You can tailor policies to your needs by choosing your own limit and deductible.

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Human

We provide you with expert answers no matter your question: Reach us 24/7 via phone, email or live chat. You even get a personal account manager to look after you and your insurance needs.

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Still wondering about Product Liability Insurance?

Here are some real world examples of claims:

It’s important to note that sometimes the most innocuous products can land your business on the wrong end of a lawsuit. For example, Blitz ran afoul of consumers when a product liability lawsuit was filed charging that the company designed gas cans that would explode when used to pour gas to start a fire. More than 30 cases were filed in 2012, costing the company an average of $4 million per case, and caused Blitz to file for bankruptcy later that year.

Then there was the Ledraplastic balancing ball. Ledraplastic was sued by Francisco Garcia of the Sacramento Kings after a balancing ball ruptured during a workout and caused him to fracture his right forearm, preventing him from playing the first four months of his first-year contract. The court awarded $4 million in lost wages and $29.6 million in damages.

These cases serve only as notable examples of how things can go wrong in any industry when the design, manufacture, and sale of a product could lead to injury or property damage. Businesses that have a comprehensive product liability policy in place are more likely to endure the actions brought against them by consumers and survive the financial devastation that can result from unfavorable judgments awarded by the courts.

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