Everyone in the Chain of Commerce Can Be Sued for a Defective Product.
Third-party protection for the products your business puts on the market
Product liability insurance covers the bodily injury, property damage, and legal defense that arise when a product a business makes, imports, distributes, wholesales, or sells causes harm. Under most states' strict-liability doctrine, any party in the distribution chain can be held responsible for a defective product regardless of fault — so an importer or retailer can be sued even for a sealed item it merely resold.
Coverage responds to the three classic defect theories — design, manufacturing, and failure to warn — across the full product lifecycle. It is often built into a general liability policy, but higher-risk products are frequently excluded and need a dedicated program.
What Product Liability Insurance Covers
Coverage responds to third-party claims that a product caused harm, whatever the defect theory:
Design Defects — Covers claims that the product was dangerous as designed, even when manufactured correctly.
Manufacturing Defects — Covers claims arising from a flaw introduced in production, assembly, or packaging.
Failure to Warn — Covers claims that inadequate instructions, labeling, or warnings made the product unsafe.
Third-Party Injury & Property Damage — Pays medical costs, damages, and the claimant's other property losses caused by the product.
Legal Defense Costs — Pays attorney fees and court costs to defend product suits, even meritless ones.
What It Does Not Cover
Product liability pays for harm the product causes to others, not the product itself:
The cost to recall, withdraw, or replace the product (covered by product recall)
Repair or replacement of the defective product itself
Pure economic loss and breach of warranty in many forms
Damage to your own product and your own work
Known defects sold anyway, and expected or intended injury
Professional advice or services, which belong to professional liability
Who Needs Product Liability Insurance
Everyone in the stream of commerce carries exposure, including:
Manufacturers, importers, distributors, and wholesalers
Retailers and online sellers, who can be sued for products they only resold
Importers, who often become the only reachable defendant when the maker is overseas
Food, supplement, cosmetics, children's-product, electronics, and auto-parts businesses
Any supplier whose retailer or marketplace contract requires stated limits and additional-insured status
How Coverage Is Structured
Product coverage has structural features that determine whether a claim is fully paid:
It is usually written on an occurrence basis, responding to injuries that occur during the policy period even if the claim comes years later
A separate products-completed-operations aggregate keeps product claims from being eroded by premises claims — but a single bad product line can exhaust it
Baseline limits are commonly $1 million per occurrence and $2 million aggregate, with high-risk products layered to $5 million or more
A vendors endorsement extends the manufacturer's coverage to downstream retailers as additional insureds
Whether defense costs erode the limit or are paid in addition is a key term to confirm
Real-World Claim Examples
A cookware handle detaches and scalds a consumer, who sues the manufacturer and the retailer that sold it
A supplement contains an undisclosed allergen with no warning, causing a severe reaction
An imported space heater's wiring defect causes a house fire, and the U.S. importer is sued because the maker is unreachable
A defective component injures a user years after sale, triggering the long completed-operations tail
Why Proper Placement Matters
Product exposure is easy to under-insure or misclassify, so placement turns on:
Confirming the general liability policy actually includes the specific product class rather than excluding it
Sizing the products-completed-operations aggregate to the real exposure
Securing the additional-insured and vendors endorsements retailer contracts require
Addressing foreign-supplier and import exposure where no valid U.S. coverage sits behind the goods
Managing the completed-operations tail when switching forms or carriers
Regulatory & Contract Context
Product liability is driven by state strict-liability tort law rather than a federal mandate, but regulators shape the exposure — the Consumer Product Safety Commission requires manufacturers, importers, distributors, and retailers to report substantial product hazards promptly, with heavy penalties for late reporting, and such action often accompanies liability suits. Retailer and marketplace vendor agreements commonly dictate minimum limits, additional-insured and primary-and-noncontributory wording, and waivers of subrogation, so the coverage is as much a contract requirement as a risk transfer.
Our Approach
At Cory Washington & Co., we place product liability around where you actually sit in the chain of commerce — confirming your product class is covered rather than quietly excluded, sizing the products aggregate to your exposure, issuing the vendors and additional-insured endorsements your buyers demand, and addressing the import gap behind overseas suppliers. We coordinate it with product recall so a single event's two sides are both covered. We also insure related exposures, including product recall and contamination, general liability, and professional liability.
Our goal is coverage that responds whether you built the product or only sold it — with limits that survive a real product claim.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See what to confirm in a product liability policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed, in the Product Liability Policy Feature Checklist.
Complete the Product Liability Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get product liability insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate product liability insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
What drives the cost of product liability insurance?
Premiums vary from business to business. The main drivers of product liability insurance pricing are the nature of your operations, your revenue and payroll, your loss history, and the limits you carry. Rather than quote a flat figure, we negotiate across several markets and walk you through the options, so you only pay for the protection you actually need.
Do I need product liability insurance?
It depends on your situation. Some coverage is required by law; more often, product liability insurance is required by a contract, lease, lender, or client before they will do business with you — and even when it is not mandated, it guards against exposures that can be severe. We review your operations and obligations and tell you plainly what you need and why.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.