What Is Products Liability?
Products Liability coverage, generally included within the products and completed operations section of a General Liability policy, is designed to respond when a product your business made, distributed, or sold is alleged to have caused bodily injury or property damage after it left your control.
Who Needs It
Manufacturers, distributors, wholesalers, and retailers of physical products can all face products liability exposure, since a claim can arise from a defect, contamination, or inadequate warning label, even if the product changed hands multiple times before reaching the end user.
Real-Life Claim Scenarios
Defective Product Causes Injury
A manufactured product malfunctions and injures the end user. Products liability coverage may help pay for legal defense and any resulting settlement, subject to policy terms.
Contaminated Food Product
A food manufacturer's product is later found to be contaminated, leading to illness claims. Coverage may help respond to the resulting liability claims, subject to policy limits.
Inadequate Warning Label
A customer is injured using a product that lacked adequate safety instructions. Products liability may help with the defense costs associated with the claim.
Distributor Held Liable for a Manufacturer's Defect
A distributor is named in a lawsuit after a product they sold, but did not manufacture, is alleged to be defective. Coverage may help address the distributor's liability exposure.
Product Recall Triggers Related Claims
A product recall leads to liability claims from customers who were affected before the recall was issued. Products liability coverage may help with the resulting legal costs, subject to policy terms.
What It May Help Cover
- Bodily injury caused by a product after it leaves your control
- Property damage caused by a defective product
- Legal defense costs for products liability lawsuits
- Claims related to inadequate instructions or warning labels
- Liability exposure for distributors and retailers, not just manufacturers
Coverage Limitations
Products liability is generally part of the products and completed operations coverage within a General Liability policy rather than a fully separate policy, and coverage does not include the cost to repair or replace the defective product itself. Limits, exclusions, and eligibility vary by product type and industry, subject to underwriting.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- Description of products manufactured, distributed, or sold
- Annual sales volume by product line
- Markets and states where products are sold
- Quality control and safety testing procedures
- Prior product recalls or liability claims
- Contractual indemnification requirements from manufacturers or retailers
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to products liability? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Products Liability Quote
Tell us about your business and a Casurance specialist can help you review Travelers products liability options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
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