Product Liability

As a business owner you are responsible for every product you import, manufacture, distribute or sell. For retailers, wholesalers, manufacturers, and distributors product liability lawsuits can be very expensive, stressful and time-consuming. Product liability is a necessity for all those businesses involved throughout the commerce chain. It forms part of your commercial general liability insurance coverage.

Protection against legal liability

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

  • Products can cause bodily injury to the customer
  • Products can cause property damage to a third party
  • The minute you start to sell a product your business is at risk for product liability lawsuits

Through our network of insurance providers, we can help business owners identify and prevent potential losses due to the products involved in their business. From everyday non-hazardous products to businesses that manufacture potentially hazardous products we can tailor a package that suits your needs.

Product liability risk management

A risk management plan that considers product safety and risk benefits over the entire life of the product can help in reducing product liability claims and strengthen businesses defense position in the event of litigation.

  • Develop a comprehensive quality control, safety, and product recall plan
  • All members of the distribution chain should maintain adequate insurance. Ensure all your suppliers, manufacturers and distributors carry the appropriate insurance and provide you with confirmation by means of a certificate of insurance. Make sure your business is added as an additional insured accordingly.
  • You can be directly held responsible for any products you import outside North America. Always verify that imported products comply with industry standards, government regulations and all labels contain the appropriate information.
  • Always work with legal counsel that specializes in Product Liability when drawing up contracts and includes all aspects of the lifecycle of the product.
  • Solicit customer feedback. This can aid in determining complaints, incidences, service and warranty issues.
  • Effective documentation demonstrates to the courts the care you take in operating your business.

Engage with the product liability specialists at Reliance Insurance. With our risk management strategy process we can walk you through the life cycle of your product and help incident risks and set you up with an affordable but full coverage insurance plan.


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