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Do I need product liability insurance on top of business owners' insurance?



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If your company manufactures, distributes, sells or repairs products, you may need product liability insurance in addition to your business insurance. In fact, business partners throughout your supply chain may require a liability insurance certificate to prove adequate product liability protection.

Why is product liability coverage so important?

If your company provides products to customers, you need product liability insurance because product liability laws usually have high jury awards.

What about product liability insurance?

Product liability insurance can pay for losses caused by a customer, consumer or third party. It covers bodily injury, including medical expenses, lost wages, repayment for death, and legal fees to defend a trial. It also covers property damage caused by your product, including the value of physical damage, repairs, lost profits due to the damage and the cost of legal defense.

What does the business owner's insurance cover?

A business owner's policy includes general liability, which protects your business from property damage, personal injury, bodily injury, and other claims arising from business. Product liability coverage can be included in some major general general areas of responsibility, with the exception of many precautions to what is covered. Additional coverage is added to a business owner's policy against the risks of the commercial building's commercial building and personal properties. A business owner policy can also add coverage to corporate income loss.

Type of liability insurance

Consumers can agree on a product liability claim for any of three types of product defects:

  • Manufacturing error: In the event of a manufacturing defect, damage or damage is caused.
  • Design error: When product design is in itself defective and cause of damage or injury.
  • Error in instructions or warnings: Lack of or incorrect instructions or marking causes damage.

Factors affecting the cost of product liability insurance

Product liability insurance prices vary to a great extent depending on the product's risk factor. This takes into account the product type, how it is marketed, the size of the distribution and the security measures in place. Some products obviously have a higher risk factor than others.

Factors taken into account when calculating the cost of product liability insurance include:

  • Type of business: The type of your business is involved in your cost, as some products and industries are hazardous than others.
  • Business area: Geographical location affects property values ​​and risks for some disasters such as flooding and earthquakes.
  • Company Value: Valuable companies are more likely to target litigation.
  • Claims history: The more claims you make about your insurance, the higher the premiums will be.
  • Tire limits: The higher the payment from the insurance company, the more the business owner will pay.

If your company manufactures, distributes, sells or repairs consumer products, it is likely that you will need product liability insurance in addition to business insurance. Our knowledgeable DM Insurance agents in Roswell, Georgia can help you find the best available product liability coverage rates.


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