What Is Product Liability Insurance And When Do You Need It

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What Is Product Liability Insurance And When Do You Need It

Liability insurance protects businesses when accused of distributing, making, or repairing products that cause harm. Typically, general liability insurance provides some product coverage; however, businesses likely to face bigger risks are better off increasing their limits or purchasing additional coverage.

Often, claims covered by this insurance cover are brought by the product’s buyer, user, or bystander. Damage or physical harm caused by the faulty product could result from:

  • Product defects
  • Design flaws
  • Inadequate warnings, labels, or instructions

Most products have the potential to cause property damage or harm. For instance, people could become sick from food sold in a restaurant. Or a small, poorly labeled toy could become a choking hazard. Computers purchased online could overheat and cause property damage.

Also, a mower repaired at a local repair shop could malfunction and harm the user. Read to learn more if you are looking for product liability in insurance Florida.

When Do You Need Product Liability Insurance?

If you are in manufacturing, design, or supply physical products, you should consider getting the cover if your business manufactures, designs, or supplies physical products. You should get covered regardless of whether you sell or give away the product, especially if it is likely to cause physical harm to users, buyers, or bystanders. It would be good to assess your product to determine how much of a risk it poses. The type of cover you get depends on the risk the product causes.

Does the Product Have Your Business Name?

If your product bears your business name, you should get this type of cover. In such cases, you may be held legally liable for any damage your product may cause to the user. As such, you are better off getting this cover to protect yourself in such instances.

Repairing, Refurbishing, or Changing a Product

You should protect your business with this product insurance plan if it involves repairing, changing, or refurbishing products. You should do this since your alterations could make the product malfunction and injure the user, buyer, or bystander.

Imported the Product From Outside the EU

Individuals that import products for sale or supply to other buyers should protect their business with this type of insurance if the product is likely to cause damage to others. However, this applies to individuals that live within the European Union.


If you are a tradesman, you should get this cover since your work could be linked to property damage or injury even after it’s completed. Homeowners could sue your company if a faulty sink leaks and damages the house’s floor.

Beauty and Cosmetology

People that work in beauty and cosmetology should protect their business from lawsuits if their product causes the buyer to have an allergic reaction. The cover could help pay for the settlement and legal defense fees.

Food Services

Various food service businesses like restaurants should get this form of insurance to protect the business from legal costs that may arise from food allergies, food poisoning, and other related cases. The policy could help pay for any legal fees when customers get sick after eating at your restaurant.


Not protecting your business with this cover could lose you a lot of money in legal fees and settlements. As such, it’s only proper to protect your business, especially if it involves manufacturing, repairing, and designing products meant for the public. Looking for product liability in insurance Florida? Contact us at National Risk Experts for more information on how to protect your business with this product insurance plan.

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