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Coverage guide
Product Liability Insurance
Product liability insurance pays when a product you make, distribute or sell is claimed to have caused bodily injury or property damage. This guide explains what it covers, what it leaves out, what drives the price and why recall costs and software failures need their own coverage.
The short version
- What it is
- Coverage for claims that a product was defective, dangerous or lacked adequate warnings and hurt a person or damaged property.
- Who needs it
- Companies that make, import, distribute or sell physical products, including hardware, devices and drones.
- Biggest pitfall
- Assuming it pays to recall a product or fix the product itself. Recall costs and software failures that cause only financial loss need separate coverage.
- What drives price
- The product, its hazard level, sales volume, where it is sold, who manufactures it and your claims and quality-control history.
- Typical spend
- Rated on sales and product hazard. A low-risk accessory costs far less than a battery-powered device or anything used around people.
The basics
What is product liability insurance, in plain English?
Product liability responds when the thing you sold causes harm after it has left your hands. A charger overheats and starts a fire. A component fails and injures a user. A product ships without a warning that it should have carried. The policy pays the defense and, up to the limit, the settlement or judgment.
Claims usually fall into three types: design defects, where the design itself is unsafe, manufacturing defects, where an error in production makes one unit dangerous, and failure to warn, where instructions or labels were inadequate. Anyone in the chain of sale can be sued, including importers, distributors and sellers.
On most policies this exposure is covered as part of general liability under products and completed operations, but companies with significant product risk often need a dedicated or enhanced form, especially where physical products carry embedded software.
Three kinds of claim
Manufacturing defects, design defects and failure to warn
Short answer: product claims almost always allege one of three things: this unit was built wrong, the design itself is unsafe, or the warnings were not good enough. Which one a plaintiff alleges shapes the defense, the evidence and often the size of the claim.
| Claim type | What the plaintiff says | Why it matters for you |
|---|---|---|
| Manufacturing defect | This unit differed from the intended design because of an error in production, a bad part or a process slip. | Often limited to a batch or lot, which is where the batch clause and supplier recourse come in. Strong quality records help the defense. |
| Design defect | Every unit built to the design carries the risk, and a safer alternative design was reasonable. | Affects the whole product line, so it can drive many claims at once and is the hardest to defend after a pattern of incidents. |
| Failure to warn | The product needed a clearer label, manual or on-screen notice about a hazard or misuse and did not have one. | Often the cheapest of the three to prevent. Labels, instructions and in-product alerts become evidence. |
A single claim can allege all three. The policy generally responds to the allegation of bodily injury or property damage, not to the label the plaintiff uses, and it typically owes a defense while any part of the claim is potentially covered. Your counsel can advise on how these theories work in your state. For the difference between defending and paying, see our explainer on duty to defend vs. duty to indemnify.
Rule of thumb
Write the warning as if the claim has already been filed. If a hazard is known inside the company, the label, the manual and the app should say so in plain words.
Who needs it
Who can be sued when a product hurts someone?
Short answer: potentially everyone who touched the product on its way to the user. Plaintiffs often name the maker, the importer, the distributor, the retailer and any component supplier, then let them argue over who pays.
| Your role | Why you are exposed | What to look at first |
|---|---|---|
| Manufacturer or brand owner | You designed, specified or sold the finished product under your name, even if someone else built it. | Limits that match your contracts, recall options, and how the policy treats contract manufacturing. |
| Importer | In many cases an importer is treated like the manufacturer, especially when the maker is overseas and hard to reach. | Territory, supplier indemnities and whether the foreign maker carries insurance you can rely on. |
| Distributor or wholesaler | You passed the product along and may be named even if you never opened the box. | Vendors coverage on the maker’s policy, plus your own policy as a backstop. |
| Retailer or marketplace seller | You sold directly to the consumer and are often the easiest defendant to find. | Additional insured status, platform insurance requirements and the maker’s indemnity. |
| Component or software supplier | Your part, module or firmware sits inside someone else’s product and is blamed when it fails. | How your policy treats components, and whether embedded software is excluded. |
| Private-label or white-label seller | You put your name on a product built by someone else, which usually makes you the responsible brand. | Whether the maker’s coverage extends to you and whether you carry your own. |
Component supplier
Builds a part or firmware module that ends up inside a finished product.
UpstreamManufacturer
Assembles and brands the product, often through a contract factory.
Core exposureImporter or distributor
Moves the product across borders and into channels.
Named oftenRetailer or marketplace
Sells to the end user and receives the complaint first.
Front lineEach party generally carries its own policy, and contracts between them push responsibility back toward the maker. That is why a distributor will ask to see your certificate of insurance and why indemnity language in supply agreements deserves a careful read.
Scope
What product liability covers, and what it doesn’t
What’s Covered
- Bodily injury caused by a product you made, sold or distributed
- Damage to other people’s property caused by a product
- Claims alleging design defects, manufacturing defects or failure to warn
- Legal defense, including for claims that turn out to be unfounded
- Claims that arise after the product has left your control, within the policy period
- Vendor and distributor exposure when added by endorsement
What’s NOT Covered
Most product liability policies exclude:
- Recall and withdrawal costs, which need separate product recall coverage
- Repair or replacement of the defective product itself
- Pure financial loss from software or service failure, which belongs on technology E&O
- Known defects and claims arising from products you knew were dangerous
- Contractual warranties and performance guarantees
- Intellectual property and patent claims, which are excluded from most forms
Which form to buy
Products-completed operations in GL vs. standalone product liability
Short answer: many companies get product liability as the products-completed operations part of a general liability policy. A standalone or enhanced product liability policy is typically considered when product risk is the main exposure, when limits need to be higher, or when the GL form carries exclusions that reach your products.
| Products-completed operations inside GL | Standalone or enhanced product liability | |
|---|---|---|
| What it is | The part of a general liability policy that responds to injury or damage from your products after they leave your control. | A policy or form built around the products you make or sell, often with broader definitions and more tailored terms. |
| Limits | Often shares the policy’s structure, with products-completed operations usually carrying its own aggregate separate from the general aggregate. | Can be set independently, and higher limits are commonly built with umbrella or excess layers. |
| Best fit | Low-hazard products, small sales volume, simple distribution. | Batteries, devices used near people, higher sales, worldwide distribution or retailer-driven limit requirements. |
| Watch for | Exclusions for certain hazards, embedded software, or products sold abroad. | Different retention, trigger and territory terms than the rest of your insurance program. |
Neither form replaces product recall coverage or technology E&O. If your core product is hardware, you will usually want the GL and product forms to work together, with limits sized to the contracts you actually sign. More on the general liability policy is on our general liability page.
Which policy responds?
Product liability vs. recall and tech E&O
Short answer: the policy that responds depends on what actually went wrong. Physical injury or property damage points to product liability, the cost of pulling a product points to recall coverage, and pure financial loss from software points to technology E&O.
| Scenario | Product liability | Product recall | Tech E&O |
|---|---|---|---|
| A battery pack overheats and burns a customer’s home | Typically covered | No | No |
| You decide to pull a batch and notify buyers before anyone is hurt | No | Usually, if the policy’s trigger is met | No |
| A firmware bug bricks devices and customers lose business income, with no injury | No | Usually no | Often covered |
| A software update causes a device to overheat and injure a user | Depends on software exclusions | No | May respond to the software failure side |
| A retailer is sued for selling your product and demands you defend it | Typically, with a vendors endorsement | No | No |
| A customer claims the product underperformed its advertised specs, with no harm | No | No | May respond, depending on wording |
The overlap between physical and digital harm is where claims get argued. A connected device that fails because of code can touch several policies at once, which is why the wording of software exclusions matters. Read the hardware and software section below for the gray area.
How the policy is built
Limits, retentions and the batch clause
Short answer: a product liability policy sets a per-occurrence limit, one or more aggregates, a deductible or retention, and rules for how many claims count as a single event. For product claims, that last rule is often the batch or lot clause.
Per-occurrence and aggregate limits
The most the policy pays for one event and the most it pays in total during the policy period. Products-completed operations often has its own aggregate.
Why it matters: A large recall of injuries from one defect can exhaust an aggregate, so size limits to your worst plausible batch rather than your average claim.
Retention or deductible
The amount you pay before the insurer does. Product policies can carry a deductible or a self-insured retention, and the difference affects who controls the defense.
Why it matters: A retention that applies per claim behaves differently from one that applies per occurrence, so check how the policy counts.
Batch or lot clause
Many policies treat all injuries or damage from the same lot, batch or common defect as one occurrence.
Why it matters: It can mean one retention and one limit for a whole batch, which helps on retentions and limits the recovery for a widespread defect. Ask how the clause is worded.
Defense inside or outside limits
Some forms pay defense in addition to the limit, others erode the limit with defense costs.
Why it matters: Eroding limits can leave less for settlements in a long product case.
Coverage territory
Where an injury or suit must occur for the policy to respond, which may be narrower than where you sell.
Why it matters: Selling in markets outside the stated territory can leave a gap that no one notices until a claim arrives.
Exclusions that reach products
Carriers sometimes exclude specific hazards, product types, embedded software or professional services.
Why it matters: A product that looks covered on paper can sit behind an exclusion for its main feature.
Rule of thumb
Ask your broker to show you how a hypothetical defect in one production batch would be counted: how many occurrences, how many retentions, which limit.
Two more structural choices matter. Most product coverage is written on an occurrence basis, meaning the policy in force when the injury happens responds, even if the claim comes later. Some specialty and standalone forms are written on a claims-made basis, meaning the policy in force when the claim is made responds, and a retroactive date and a tail become important when you change carriers or stop selling a product.
Supply chain
Contract manufacturers, overseas production and vendors endorsements
Short answer: outsourcing production does not outsource your liability. If your brand is on the product, you usually remain a target, and your policy and your contracts need to account for factories you do not control.
| Topic | What to expect | What to do |
|---|---|---|
| Contract manufacturers | Underwriters ask who builds the product, where, and what quality controls and audits apply. | Keep supplier audits and quality records. Ask whether the policy distinguishes between products you make and products made for you. |
| Overseas production | A foreign maker may be hard to sue or collect from, which pushes claims toward you as the importer or brand. | Require insurance and indemnity in the supply agreement where practical, and ask for evidence of that insurance rather than a promise. |
| Vendors endorsement | An endorsement that extends your coverage to distributors and retailers that sell your product in the normal course of business. | Request it when a seller or platform requires it. Wording typically limits coverage to the seller’s role, not to changes the seller makes to the product. |
| Indemnity agreements | Supply and distribution contracts often shift liability to the maker through indemnity clauses. | Have counsel review them. Check that your policy covers liability you assume under an insured contract, within its terms. |
| Subrogation against suppliers | If your insurer pays a claim caused by a supplier’s part, it may pursue the supplier. See subrogation. | Do not waive recovery rights in contracts without talking to your broker. A waiver of subrogation may be required, but it has a cost. |
A vendors endorsement matters because a retailer sued over your product will tend to look to your insurance first. Without it, the seller may be left with only its own policy, and the dispute can reach you through the supply contract anyway.
Hardware, software and connected devices
When a physical product is run by software
Short answer: if software failure in a physical product causes injury or property damage, product liability may respond, but many policies exclude or limit software and professional services, and pure financial loss from a software failure typically belongs on technology E&O. Treat this as a gray area and ask about it directly.
| What failed | Likely policy | Why it is not always clean |
|---|---|---|
| A component overheats because of a hardware flaw | Product liability | The classic case: a physical defect causing physical harm. |
| Firmware misreads a sensor and the device injures someone | Product liability or tech E&O, depending on wording | The harm is physical, but the cause is code, and some forms exclude software-related losses. |
| A cloud service outage disables a device and customers lose revenue | Tech E&O or cyber | No bodily injury or property damage, so a liability form built for physical harm is unlikely to respond. |
| An over-the-air update bricks devices in the field | Tech E&O, possibly recall | Fixing or replacing units is a cost to you, not a third-party claim. |
Robotics, drones, wearables, vehicles and connected home or industrial devices all sit in this zone. Underwriters will ask how updates are tested and released, whether the device has safety limits that do not depend on software, and who is responsible when a third-party model or library is inside the product. If your product also relies on AI, read our guide to AI liability insurance and, for the device side, the physical AI and hardware industry page. Drone makers can also see the drone liability page.
Hardware companies also carry cyber and technology exposures outside this policy. See cyber and tech E&O and technology E&O.
Product recall
Product recall coverage: the policy that pays for pulling a product
Short answer: product recall insurance is a separate coverage that typically reimburses the costs of withdrawing a product: notification, retrieval, shipping, storage, disposal and sometimes replacement. Standard product liability usually does not pay for any of that.
| Product liability | Product recall | |
|---|---|---|
| Who is paid | Injured people and property owners, through settlements and judgments | You, for your own costs of withdrawing the product |
| Type of loss | Third-party bodily injury and property damage | First-party expense, see first-party coverage |
| Trigger | An injury or damage claim | A defined event, which may include a government order, a contamination event or a decision after a covered hazard |
| Typical gap | Does not repair or replace the product | Often excludes voluntary recalls without a defined trigger, and brand or lost sales losses unless added |
Triggers vary widely. Some policies respond only to an accidental contamination or a government-mandated recall, and others cover voluntary recalls when there is a credible risk of injury. Read the trigger and the list of covered costs carefully, because those two items decide whether a real recall will be paid.
Rule of thumb
If one bad batch would stop you from shipping or paying suppliers, price recall coverage and compare it with the cost of self-funding. Do it before the incident, not during it.
Recall coverage commonly needs a documented recall plan, traceability by lot or serial number, and supplier controls. Building those also helps your product liability submission. Our scenario above, the recall that GL did not pay for, shows how the gap appears in practice.
Selling to retailers and marketplaces
What retailers and marketplaces require you to carry
Short answer: large retailers and online marketplaces commonly require sellers to carry product liability insurance, at stated minimum limits, with the retailer or platform named as an additional insured. Requirements differ by company, so read the current terms for each channel.
| Requirement | What it usually means | How to prepare |
|---|---|---|
| Minimum limits | A per-occurrence and aggregate amount that may increase with sales volume or product category. | Ask your broker whether your policy and any umbrella together satisfy the stated limit. |
| Additional insured | The retailer or platform is added to your policy so it can claim directly. See additional insured. | Request the endorsement before onboarding, since added wording takes time and a certificate alone does not grant coverage. |
| Primary and non-contributory | Your policy pays first, without seeking contribution from the retailer’s policy. See primary and non-contributory. | Confirm the wording is on the policy, not only on the certificate. |
| Waiver of subrogation | You give up the insurer’s right to recover from the retailer. See waiver of subrogation. | Ask for it by endorsement and check for any added charge. |
| Certificate of insurance | Proof of coverage delivered to the retailer, often through a portal. | Have a clean COI ready with the right entity names and policy dates. |
A certificate only evidences coverage, it does not extend it, and retailers frequently reject certificates that do not match their wording. Our guides to what clients and lenders require on a COI and insurance requirements in enterprise contracts walk through the same documents for B2B deals.
Endorsements to ask for
Enhancements worth asking about
Short answer: the base form decides most of what you get, but a handful of endorsements and definitions close the gaps that hardware and product companies hit most often. Availability and cost depend on the carrier and your risk.
Vendors endorsement
Extends protection to distributors and retailers that sell your product, usually in the normal course of business.
Why it matters: Many retailers will not stock a product without it, and it keeps sellers from turning to you for a separate defense.
Additional insured, primary and non-contributory
Adds named parties to your policy and makes your coverage respond first.
Why it matters: Contracts often require both, and the missing wording is a common reason certificates are rejected.
Worldwide or broader territory
Expands where injuries or suits may occur for the policy to respond.
Why it matters: Selling online can send product into markets you did not plan for.
Clear batch or lot clause
Confirms how a common defect across a lot is counted for retention and limit purposes.
Why it matters: The count can change what you pay and what remains for later claims.
Software and embedded technology wording
Clarifies how the policy treats software that is part of a physical product, rather than leaving it to an exclusion.
Why it matters: It is the most contested area for connected devices.
Contract manufacturer coverage
Addresses products made for you by third parties, including those sold under your brand.
Why it matters: Your brand often puts you in the claim regardless of who built it.
Discontinued products coverage
Keeps coverage in place for products you no longer sell, which can still cause claims.
Why it matters: Exposure lasts as long as units remain in use.
Recall and contamination options
Adds or coordinates product recall cover with the liability program.
Why it matters: Closes the biggest gap between the liability policy and a real withdrawal.
What changes over time
How product coverage changes as you grow and renew
Short answer: product liability gets more complex as you add products, channels and volume, and coverage must continue for products already in the field after you stop selling them. Review it at every new product launch, every new market and every renewal.
Launch
First product, limited sales, simple contracts. A GL form with products-completed operations may be enough.
Early stageScale
More units, retailers, marketplaces and contract factories. Limits, vendors cover and recall become real questions.
GrowthExpand
New markets and product lines. Territory, software wording and umbrella limits need attention.
ExpansionWind down or sell
Discontinued products still carry exposure. Tail, discontinued products cover or run-off terms matter.
ExitAt renewal, underwriters will review your loss runs, your sales by product and any incidents or complaints. Disclose recalls, near misses and design changes before they do. A design change after an incident can be a good sign when it is documented, and a concern when it is not.
Rule of thumb
Keep a file of every policy, every certificate and every product launch date. When a claim arrives long after the sale, the question is which policy year applies.
What claims look like
Three product claims, and the recall that is not covered
Scenario 01
The charger that overheated
What happenedA hardware company’s battery charger overheated overnight and started a fire in a customer’s apartment.
The claimBodily injury and property damage claim alleging a manufacturing defect.
What respondedProduct liability paid the defense and the settlement for the injury and the damage to the home, up to the limit.
Scenario 02
The device that injured a bystander
What happenedA connected device malfunctioned in a public setting and struck a passerby, causing injury. The user manual did not warn about the failure mode.
The claimBodily injury claim alleging design defect and failure to warn.
What respondedProduct liability responded to the injury claim. The policy did not pay to redesign the product.
Scenario 03
The recall that GL did not pay for
What happenedAfter several units overheated, the company decided to pull a production batch and notify customers.
The claimCosts of notification, shipping, disposal and replacement.
What respondedStandard product liability did not cover recall expenses. A separate product recall policy is the coverage that pays them.
Scenarios are illustrative composites based on common claim patterns, not specific Alton Risk clients. Whether a real claim is covered depends on the policy wording and the facts.
Pricing
What moves the price of product liability?
Product liability is rated on how likely your product is to hurt someone and how much it would cost if it did, so the product itself drives most of the premium.
| Factor | Why it moves your premium |
|---|---|
| Product type and hazard | Batteries, devices used near people, and anything with moving parts or heat rate higher than low-hazard accessories. |
| Sales volume | Revenue is the usual rating base, so more units sold means more exposure and premium. |
| Where it is sold | Sales in the US and Canada are simpler to insure than worldwide distribution, where claims can be larger and harder to defend. |
| Manufacturing model | Contract manufacturers and offshore suppliers affect your quality control and your ability to recover from a supplier. |
| Testing and certification | Safety certifications and documented testing reduce perceived risk. |
| Warnings and instructions | Clear labels and user guidance matter in failure-to-warn claims. |
| Claims and recall history | Past claims, incidents and recalls tell underwriters how well you manage quality. |
How to get quoted fast
What to have ready, and the mistakes that slow quotes
Short answer: a quote moves quickly when the carrier can understand the product, the sales and the supply chain from one clear submission. Most delays come from missing manufacturing details and vague product descriptions.
| Have ready | Why underwriters ask |
|---|---|
| A one-page description of each product and who uses it | Hazard level and end use drive classification and appetite. |
| Annual sales by product and by channel | Revenue is the usual rating base, and channel affects contract requirements. |
| Manufacturer names, locations and quality controls | Shows how much control you have over defects. |
| Test reports and certifications | Documented safety work supports the risk. |
| Labels, manuals and warnings | Failure-to-warn exposure is judged from them. |
| Loss runs, incident log and any recall history | Shows how you handle problems. |
| Contracts that require insurance | Tells the broker which limits and endorsements you need. |
Common mistakes include describing a product vaguely, leaving out the battery or heating element, ignoring marketplace sales, and signing a retailer contract before checking its insurance wording. Unusual hazards often move to the surplus lines market, which a specialty broker can access.
Rule of thumb
Send the manual and the label with the first submission. Underwriters often read them before the application.
From the carrier’s side of the table
What underwriters ask before they quote
Underwriters want to understand the product the way an engineer would. A clear description with supporting documents often matters more than the application form.
- A description of each product, how it is used and who the customers are.
- Annual sales by product and the markets where you sell.
- Manufacturing details: who builds it, where and what quality controls apply.
- Testing and certifications, such as UL or FCC, and any safety standards you follow.
- Warnings, labels and user instructions.
- Supplier and distributor agreements, including indemnities and vendor insurance.
- Incident, claim and recall history, and whether you have a recall plan.
Self-audit
Questions to ask about your current policy
- Does your policy include products and completed operations coverage with limits that meet your contracts?
- Are vendors and distributors added as additional insureds where they require it?
- Does a recall exclusion leave you with no protection for pulling a product?
- Are products sold outside the US covered, or is coverage territory limited?
- Do exclusions for embedded software or professional services reach products you actually sell?
- Do you have a separate product recall policy if a recall would threaten the business?
If you can’t answer yes to all of them, book a short coverage review (opens in a new tab) and we will read the policy with you.
Frequently Asked
Common questions
What does product liability insurance cover?
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Product liability covers claims that your product caused bodily injury or property damage, including design defects, manufacturing defects, and failure-to-warn claims, together with legal defense costs.
Who needs product liability coverage?
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Any company that manufactures, distributes, imports, or sells physical products. Hardware startups, drone makers, and IoT device companies face added complexity where embedded software meets a physical product.
Does product liability insurance cover recalls?
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Standard product liability does not automatically cover recall expenses. We can add product recall coverage for the cost of retrieving, replacing, or disposing of a defective product.
How is product liability different from general liability?
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Product liability, meaning products and completed operations, responds to harm caused by products you have sold. General liability covers broader premises and operations exposures. They are frequently written together.
What are the three types of product defects?
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Manufacturing defects, where an error in production makes a unit unsafe; design defects, where the design itself carries an unreasonable risk; and failure to warn, where labels or instructions were inadequate. A single claim can allege all three, and the policy generally responds to the injury or damage alleged.
Can a retailer or distributor be sued for a product it did not make?
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Yes. Plaintiffs commonly name everyone in the chain of sale, including distributors and retailers. Sellers usually rely on a vendors endorsement on the maker’s policy, their own coverage and indemnity clauses in their contracts. Counsel can advise on how this works in a given state.
What is a vendors endorsement?
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A vendors endorsement extends the maker’s product liability coverage to distributors and retailers that sell the product in the normal course of business. It typically excludes sellers who modify, repackage or relabel the product, and the exact wording depends on the policy.
Do I need standalone product liability or is general liability enough?
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It depends on the product, sales volume and contracts. Low-hazard products may fit within the products-completed operations part of general liability. Batteries, devices used near people, worldwide sales or high retailer limit requirements often lead companies to consider a standalone or enhanced form.
What does product recall insurance cover?
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Product recall coverage typically reimburses costs such as notification, retrieval, shipping, storage, disposal and sometimes replacement, once a defined trigger is met. Triggers and covered costs vary, so read the policy carefully. It is separate from product liability.
Does product liability cover software or firmware failures in a hardware product?
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It may, when the software failure causes bodily injury or property damage, but many forms exclude or limit software and professional services. Pure financial loss from software failure typically belongs on technology E&O. Ask the carrier how embedded software is treated.
Does product liability cover products made by a contract manufacturer overseas?
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Often yes for claims against you as the brand owner or importer, but policy wording and underwriting questions vary. Carriers usually want to know who builds the product, where and what quality controls apply. Supplier insurance and indemnities add another layer of recourse.
What is a batch clause?
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A batch or lot clause treats claims arising from the same lot, batch or common defect as a single occurrence. That can mean one retention and one limit for the whole group of claims. Whether it helps or hurts depends on the wording and the size of the problem.
Is product liability claims-made or occurrence?
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Most product coverage inside general liability is occurrence-based, so the policy in force when the injury happens responds. Some standalone or specialty forms are claims-made, which makes retroactive dates and tail coverage important. Check the form you are buying.
What insurance do retailers and marketplaces require sellers to carry?
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Many require product liability at stated minimum limits, with the retailer or platform named as an additional insured, sometimes on a primary and non-contributory basis. Requirements differ by company and change over time, so read the current terms for each channel.
Do I need coverage for products I no longer sell?
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Often yes. Products already in the field can still cause injury or damage after you stop selling them. Ask about discontinued products coverage, and keep records of past policies, since the policy in force at the time of injury may be the one that responds.
Does product liability cover products sold outside the United States?
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It depends on the policy’s coverage territory and on where the injury or suit occurs. Some forms limit territory to the US and Canada. If you sell internationally or through online marketplaces, ask for the territory wording in writing.
How do I prove I have product liability coverage to a retailer?
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You provide a certificate of insurance, often through a portal, along with any required additional insured and primary and non-contributory endorsements. A certificate only evidences coverage and does not extend it, so the underlying policy wording matters.
Can't find an answer to your questions? Reach out to our team →
Sources and further reading: U.S. Consumer Product Safety Commission, "Business and manufacturing" (opens in a new tab); Cornell LII Wex: Product liability (opens in a new tab); Triple-I (Insurance Information Institute): Product liability, recall and contamination insurance (opens in a new tab); IRMI: Occurrence policy (opens in a new tab); The Hartford: Claims-made vs. occurrence (opens in a new tab); IRMI: Claims-made policy (opens in a new tab); IRMI: How the Limits Apply in the CGL Policy (opens in a new tab); IRMI: Designated Construction Project General Aggregate Limit Endorsement (opens in a new tab). This page is general information, not legal or insurance advice. Coverage terms vary by carrier, policy form and state.