Product Liability Insurance

If your business manufactures, distributes, or sells products, you can be held legally responsible if those products cause injury or property damage. Product Liability Insurance protects businesses from financial losses due to defective, unsafe, or malfunctioning products. Whether it's a design flaw, manufacturing defect, or improper labeling, this coverage helps safeguard your business from costly claims.


A Product Liability Insurance policy typically includes coverage for:


  • Legal defense costs and settlements
  • Bodily injury or property damage caused by a defective product
  • Manufacturing and design defects
  • Mislabeling and failure to provide adequate warnings


At McShea Insurance, we specialize in helping businesses mitigate the risks associated with product liability. We tailor Product Liability Insurance policies to ensure that businesses can operate with confidence, knowing they are protected from unexpected claims.

Who Needs Product Liability Insurance?

Any business involved in producing, selling, or distributing physical goods should consider Product Liability Insurance. This includes:


  • Manufacturers
  • Wholesalers and distributors
  • Retailers and e-commerce businesses
  • Importers of foreign goods
  • Businesses that modify or rebrand existing products

FAQs

  • Does Product Liability Insurance cover product recalls?

    Standard Product Liability Insurance does not typically cover the costs associated with a product recall. While it may cover lawsuits resulting from a defective product, expenses related to retrieving, replacing, or destroying the faulty product require Product Recall Insurance as an additional policy.

  • How is product recall covered?

    Product Recall Insurance is a separate policy designed to cover the costs associated with recalling a defective product. This includes expenses such as:


    • Notifying customers and retailers
    • Removing and disposing of defective products
    • Reimbursing customers for returns and replacements
    • Crisis management and public relations efforts to protect your brand reputation

  • How much does Product Liability Insurance cost?

    The cost of Product Liability Insurance varies based on several factors, including:


    • Type of products sold
    • Business size and revenue
    • Risk factors associated with the product
    • Claims history and industry regulations

  • Can I customize my Product Liability Insurance policy?

    Yes! Every business faces unique risks, and policies can be tailored accordingly. Common endorsements include:


    • Worldwide Coverage: Extends protection for products sold internationally.
    • Completed Operations Coverage: Protects against liability claims after a product has been sold and used.
    • Vendor Coverage: Extends protection to third-party vendors involved in the distribution of your product.

Get Started Today

Protect your business from costly product liability claims with the right Product Liability Insurance policy. At McShea Insurance, we work closely with businesses to assess their liability risks and customize a policy that provides the right level of protection. Contact McShea Insurance today to discuss your coverage options and get a personalized quote.

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