Insurance Protection for Businesses That Make, Sell, Distribute, or Import Products
Product-based businesses face risks long after a product leaves the warehouse, store, production facility, or fulfillment center. If a product allegedly causes bodily injury, property damage, illness, allergic reaction, contamination, or another covered loss, the business may face a claim.
Foray Insurance Group LLC helps manufacturers, ecommerce businesses, wholesalers, distributors, retailers, private label brands, and product-based businesses evaluate product liability insurance options based on the products sold, sales channels, revenue, distribution, contracts, and risk exposure.
Who May Need Product Liability Insurance?
Product liability insurance may be important for a wide range of product-based businesses across industries and sales channels.
Manufacturers & Brands
- Manufacturers
- Contract manufacturers
- Private label brands
- Product designers
Retail & Ecommerce
- Ecommerce businesses
- Retail businesses
- Businesses selling on online marketplaces
- Businesses selling through retailers or distributors
Supply Chain
- Wholesalers
- Distributors
- Importers
- Consumer goods companies
Specialty Products
- Food and beverage businesses
- Cosmetic and personal care brands
- Health and beauty product companies
- Industrial product companies
What Product Liability Insurance May Address
Bodily Injury Claims
Product liability coverage may help address certain claims alleging that a product caused bodily injury, illness, allergic reaction, contamination, or physical harm.
Property Damage Claims
Coverage may apply to certain claims alleging that a product caused damage to someone else's property.
Products and Completed Operations
Product liability is often connected to products and completed operations coverage. Businesses should review whether this coverage is included, excluded, limited, or requires separate placement.
Legal Defense Costs
Product liability policies may help pay certain legal defense costs for covered claims, subject to policy terms, conditions, exclusions, and limits.
Retailer and Vendor Requirements
Retailers, marketplaces, distributors, and vendors may require proof of product liability insurance before allowing products to be sold through their channels.
Contractual Insurance Requirements
Contracts may require specific limits, additional insured status, waiver of subrogation, certificates of insurance, or other insurance terms.
Common Product Liability Insurance Challenges
Underwriters evaluate many factors when reviewing product liability risks. Understanding these challenges helps businesses prepare for the insurance placement process.
Product Type
Food, cosmetics, supplements, children's products, electronics, machinery, automotive parts, industrial products, and personal care products may each be viewed differently by carriers.
Manufacturing vs. Distribution
Carriers may review whether the business manufactures the product, imports it, labels it, distributes it, sells it, or relies on a contract manufacturer.
Private Label Exposure
Private label businesses may be treated like manufacturers because the product is sold under their brand name, even if production is outsourced.
Ingredient or Component Risk
Products with ingredients, formulas, components, batteries, chemicals, consumables, or safety-sensitive uses may require special review.
Sales Channels
Selling through ecommerce platforms, retailers, wholesalers, distributors, salons, marketplaces, or international channels may affect insurance requirements.
Product Recall
Product liability insurance may not automatically cover the cost of recalling a product. Product recall coverage may need to be reviewed separately.
International Sales
Selling products outside the United States may create additional underwriting and coverage considerations.
Related Product Business Coverages
Product-based businesses often need more than just product liability insurance. A comprehensive risk management approach may include several related coverages.
Commercial General Liability
May help address premises liability, certain operations-related claims, and products and completed operations depending on the policy.
Commercial Property Insurance
Can help protect inventory, equipment, raw materials, finished goods, and business personal property.
Business Income Insurance
May help replace lost income after a covered property loss disrupts business operations.
Product Recall Coverage
May help address certain costs associated with withdrawing a product from the market, subject to policy terms.
Cyber Liability Insurance
Product businesses that sell online, collect customer data, use ecommerce platforms, or process payments should review cyber liability coverage.
Cargo and Transit Coverage
May help protect goods while they are being shipped or transported.
Workers Compensation Insurance
Businesses with employees should review workers compensation requirements and coverage needs.
Information Helpful for a Quote Review
To review product liability insurance options, gathering the following information in advance helps streamline the process and ensures a more accurate evaluation of your coverage options.
Business Details
Business name and address, description of products sold, product labels or website if available.
Revenue & Sales
Annual revenue, projected revenue, sales channels, and states or countries where products are sold.
Manufacturing & Supply Chain
Manufacturer or contract manufacturer details, ingredient or component details if applicable, and inventory values.
Insurance & Requirements
Current insurance policy if available, vendor or retailer insurance requirements, and prior loss history if available.
Related Coverages
Foray Insurance Group LLC can help product-based businesses review a broad range of insurance coverages to address the risks associated with making, selling, distributing, or importing products.
Manufacturing Insurance
Commercial General Liability
Commercial Property Insurance
Business Owners Policy
Cyber Liability Insurance
Product Recall Coverage
Cargo and Transit Coverage
Home Based Business Insurance
Ready to Review Your Insurance Options?
Whether you own rental property, manage a business, serve clients as a referral partner, or need personal insurance guidance, Foray Insurance Group is ready to help.
Contact Information
Foray Insurance Group LLC
Independent Insurance Agency
📧 info@forayinsurancegroup.com
🌐 forayinsurancegroup.com
📱 (630) 219-1037
Foray Insurance Group LLC
Independent Insurance Agency
Illinois | Minnesota
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Foray Insurance Group LLC is an independent insurance agency. Insurance products are subject to carrier availability, underwriting approval, policy terms, conditions, and exclusions.
Product Liability Insurance