Importers and manufacturers based in the United States are generally responsible for ensuring that their products are safe and correctly labeled. That said, sometimes things still go wrong, despite your best efforts.
Product liability insurance plans can go a long way when it comes to reducing the risks of injuries and other damaging situations caused by product compliance issues.
In this guide, we list product liability insurance carriers, brokers, and agencies in the United States.
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What is product liability insurance?
A product liability insurance offers coverage against claims that may arise due to defective, or otherwise non-compliant products. For example, product liability insurance can cover expenses that arise in case someone is injured, or if a property is damaged, as a result of using your product.
Keep in mind that you may need to demonstrate full product compliance before you can buy an insurance plan. In practice, this can mean that you must submit the following:
- Lab test reports
- Product certificates (e.g. Children’s Product Certificate)
- Label photocopies
Is product liability insurance compulsory in the United States?
It’s up to you as an importer or brand to buy product liability insurance. However, it is wise to have some coverage in case manufacturing defects or something else results in compliance issues. This is especially important if you are selling “high-risk” products such as electronics, cosmetics, toys, or medical devices.
Further, many retailers require that their suppliers have product liability insurance. Amazon may also require that your company be covered by product liability insurance.
Product Liability Insurance Carriers
An insurance company is also called an insurance carrier or insurer. An insurance carrier sells insurance policies directly to the buyers. Some insurance carriers also authorize insurance brokers or insurance agents to sell their products.
Brokers and agencies do not issue the policy to the buyers. They only act as a proxy between the buyers and the carriers, charging a commission or handling fee in the transaction. While an agency sells the policies of a limited number of carriers, often via an exclusive agreement, brokers tend to deal with a larger number of carriers.
Liberty Mutual Insurance
Liberty Mutual Insurance is a Fortune 100 insurance company providing tailor-made general and product liability insurance solutions to a broad spectrum of manufacturing businesses.
Their product liability insurance policies cover claim expenses caused by manufacturers’ errors and omissions and the risk of product recalls. In addition, the company offers protection for global exposures, from sales samples to international delivery, in a single policy.
Liberty Mutual offers flexible product liability insurance programs to cater to manufacturers’ needs, including:
a. Guaranteed cost, which means that the insured pays a flat fee (or rate) upfront for a specific amount of coverage, opposite to self-adjust the cost based on the changing situation
b. Large deductible, which means that the insured undertakes all the losses if the claim amount is under the agreed amount with the insurance company
Insurance scope
- Manufacturing errors coverage
- Manufacturing omissions coverage
- Product recalls expense coverage
- Guidance on rules and audit processes
- Guidance on organizing business records
- Preliminary and interim account reviews
Address: 175 Berkeley Street, Boston, MA 02116, United States
Chubb
Chubb is one of the world’s largest property and casualty insurance companies and a leading commercial lines insurance carrier. The company has operation offices in 54 countries and territories, providing product liability, commercial, and casualty insurance. Chubb provides global primary product liability coverage for US distributors, importers, and wholesalers.
Currently, Chubb’s global network allows them to handle domestic claims for incidents occurring in the US, as well as for worldwide claims brought in the US.
Insurance Scope
- Domestic US coverage
- International coverage (worldwide claims brought in the US)
- Third-party administered claim and risk control services
Address: Warren, New Jersey, United States
The Heritage Group
The Heritage Group was founded in 1993 in New York as a company offering insurance, solutions, and consultation services to businesses and individuals.
The product liability insurance protection offered by the Heritage Group covers product design, manufacturing, marketing, and distribution-related risks. These programs protect policyholders in the event a suit arises out of the use of the insured products, including loss of personal and business property damage, injury, or death.
Product Categories
Insurance Scope
- Bodily injury coverage
- Property damage coverage
- File business online
- Claim assistance
Address: 1184 Troy-Schenectady Road, Latham, NY, 12110, United States
The Hartford
The Hartford is an insurance carrier that was founded in 1810 in Hartford, Connecticut. The company mainly sells products through a network of agents and brokers across the United States.
Their product liability insurance covers the industry of manufacturing, retail, importing, and exporting business. The product liability policy covers compensation for injuries and losses caused by product defects, including:
a. Design defects that existed before the product was made
b. Manufacturing defects that occur while the product gets made
c. Improper warning, meaning that the manufacturer does not give a customer enough warning on the proper use of a product
The company includes product liability insurance with their clients’ general liability insurance policies, and clients pay around USD 85 a month or USD 1,019 a year.
Insurance Scope
- Design defects coverage
- Manufacturing defects coverage
- Improper warnings coverage
Address: Hartford, CT, United States
AIG
AIG is a leading global insurance organization with offices in approximately 80 countries and jurisdictions. AIG is listed on the New York Stock Exchange.
AIG provides product liability, general liability, casualty insurance, and life insurance services. AIG offers online product liability services to their clients that design, manufacture, or distribute products.
Insurance Scope
- Bill coverage
- Risk solutions for businesses and enterprises
Address: Floor 1, 1271 Avenue of the Americas, 6th Avenue, New York, NY 10020, United States
Sentry Insurance
Sentry Insurance is a mutual insurance company that started its business in 1904. The company specializes in providing commercial insurance solutions to business owners and their employees. The main products for businesses include product liability insurance, general liability insurance, and life insurance.
In the event of an accident, product liability insurance helps cover medical, legal, or damage expenses that the business is found liable for.
Product Categories
- Electronic components
- Farm equipment
- Metal products
- Plastics and rubber goods
- Printing products
Insurance Scope
- Protection against injuries
- Damage expenses coverage
Address: 1800 North Point Drive, Stevens Point, WI 54481, United States
The Hanover Insurance Group
The Hanover Insurance Group was founded in 1852 providing fire insurance services, and has since expanded to offer liability insurance coverage for products, homes, and cars.
According to the company, there are different types of product defects in product liability claims, such as manufacturing, design, or communication defects.
Their website also outlines three types of damages in product liability lawsuits awarded to the relevant injured party: compensatory, punitive, and economic losses damages. Compensatory damages cover the direct consequences of the defective item; punitive damages cover more than the damages incurred; and economic losses involve damage to persons and property.
Product categories
- Apparel
- Electrical products
- Machinery
- Furniture
- Textiles
- Wood products
- Food
- Printers
Insurance Scope
- Compensatory damages coverage
- Punitive damages coverage
- Economic losses coverage
Address: 440 Lincoln Street, Worcester, MA 01653, United States
Product Liability Insurance Brokers
An insurance broker helps consumers to find suitable insurance products, after examining the customer’s company operation, management, finance, and risks closely.
Brokers also help the clients examine the terms and conditions of the policies or provide guidance when choosing among several options. They often keep working with clients, even when the client decides to change insurance carriers.
Insurance agencies, on the other hand, work closely with a limited number of carriers to sell their specific products. Thus, agencies tend to have a stronger relationship with the carriers than with the final client.
Sadler & Company
Sadler & Company is an insurance broker based in South Carolina that provides product liability insurance for manufacturers, importers, and distributors.
Once they receive the quotation request, Sadler & Company provides a portfolio with multiple quotation information from up to 18 carriers.
Sadler & Company offers flexible options to meet clients’ affordability and coverage needs. According to the company’s website, they provide expert insurance services regardless of business size and premium amounts paid.
Product Categories
- Health and fitness products
- Latex gloves
- E-cigarettes
- Beauty and cosmetic products
- Nutraceuticals and dietary supplements
- Medical equipment
- Sports and recreational equipment
- Children’s products
- Leisure equipment
- Chemicals
- Motorcycles
Insurance Scope
- Consultation and risk management
- Insurance coverage audit
- Contract review and guidance
Address: 3014 Devine St., Columbia, SC 29250, United States
Insurance Canopy
Insurance Canopy is an insurance broker that offers product liability insurance sourcing services for businesses that import, produce, distribute, or sell in the United States. According to the company’s website, they have protected small businesses for 15 years, insured over 135,000 businesses, and served more than 400 industries and professions. They have also protected more than 10,000 businesses with product liability insurance.
Insurance Canopy helps customers find insurance providers for product liability insurance within 24 hours. Customers can also use Insurance Canopy’s online process to apply for an insurance policy.
Product Categories
- Beauty and cosmetics
- Vaping products
- Vitamin and dietary supplements
- Cleaning products
- Home and office supplies
- Medical devices
- Pet supplies
Insurance Scope
- Help customers evaluate their product risks and insurance needs
- Explain to the customers the applicability of the policies
- Provide a quotation in less than 10 minutes
- Direct access to online applications for the product, professional, and general liability insurance coverage
Address: Insurance Canopy, P.O. Box 34833, North Chesterfield, VA 23234, United States
Founder Shield
Founder Shield is an insurance broker that provides product liability insurance sourcing and quotation services for companies, especially for start-ups that are looking for convenient one-stop insurance services.
The company helps retailers, sellers, and e-commerce dealers in finding product liability insurance coverage that suits their needs the most. The service platform of Founder Shield streamlines the inquiry, quotation, and application processes online.
Insurance Scope
- Industry and service consultation
- Analyze the practical and potential risks of the client’s business
- Source insurance products according to the client’s needs
- Provide quotation
Address: 114 E 25th St, New York, NY 10010, United States
Veracity Insurance
Founded in 2013, Veracity Insurance is a national brokerage firm that offers wholesale insurance broker services, including product liability services. The company’s brokers have over 50 years of combined experience.
The company specializes in providing product liability insurance to manufacturers, importers, and distributors of goods and services. Veracity Insurance has different liability services that depend on the product. For instance, they offer product liability insurance for beauty and cosmetics, e-cigarettes, and sporting products.
They have in-house underwriting experience and can help protect clients from the risk of damage claims. The coverage limits are up to USD 100 million, and clients have a minimum premium of USD 1000. Further, their services are available in all 50 states.
Product categories
- Cosmetic products
- E-Cigarettes
- Sporting goods
- Consumer products
- Industrial products
- Medical products
- Food products
- Clothing products
Insurance Scope
- Limits up to USD 100 million
- Foreign liability coverage
- Minimum premium of USD 1,000
- Customizable product liability insurance
- In-house underwriting
Address: 260 South 2500 West, Suite 303 Pleasant Grove, UT 84062, United States
AdvisorSmith
AdvisorSmith was created to provide business owners with research, information, tools, and guidance, which include information regarding product liability insurance. Clients can easily get a quote through their website.
The company has a page explaining in detail the intricacies of product liability insurance. This may include claims against design defects, production or manufacturing flaws, or marketing defects. The page states that small businesses pay USD 1,192 a year for product liability insurance on average.
Product liability insurance also covers and protects businesses from legal costs and financial consequences, as well as defenses against claims of bodily injury, financial losses, and property damage caused by the product.
Product categories
- Beauty or fragrance products
- Children’s products (e.g. toys, clothing, gear)
- Clothing and apparel
- Food products
- Home improvement supplies
Insurance Scope
- Legal and court costs
- Defense against claims of bodily injury
- Defense against claims of property damage
- Defense against claims of financial losses
Address: 99 Wall Street, Suite 1802, New York, NY 10005, United States
Product Liability Insurance Agencies
An insurance agency is a company that sells insurance carrier’s products to consumers and collects commission from the order. An insurance agency can represent one insurance carrier and only sell products from this one carrier. This type of insurance agency is called a captive agency. An insurance agency can also represent more than one insurance carrier. This type of insurance agency is called an independent insurance agency.
An insurance agency is different from an insurance broker because the former have tight bonds with the insurance companies and tend to represent their interests, while the latter only represents the customers, and may offer policies from a large pool of carriers.
Schaefer Enterprises
Schaefer Enterprises is an insurance agency that was founded in 1999 in New York. The company is a division of Patriot Growth Insurance Services, which has more than 80 office locations across the United States. They are also fully licensed in all US states.
Schaefer Enterprises partners with insurance carriers to offer product liability insurance, as well as general liability insurance, and property insurance.
Insurance Scope
- Business risk evaluation and insurance suggestion
- Help customers choose the most suitable insurance policy
- Free quotation
Address: 77 Chambers Street, 3rd Fl, New York, NY 10007, United States
Mid-America Specialty Markets
Founded in 1992, Mid-America Specialty Markets is an independent insurance agency providing commercial insurance products and personal insurance products, including product liability insurance. The name of the company originates from the business locations, which include the following states:
- California
- Arkansas
- Illinois
- Iowa
- Kansas
- Missouri
- Oklahoma
- Texas
Mid-America allows clients to access product liability insurance products from multiple carriers for a wide range of products.
The company aims to provide flexible and one-to-one services to the users by supporting the switch from company to company when the customers require it, providing claims assistance and advocacy, and providing policy explanation and follow-up services from the same agent continually.
Product Categories
- Transportation vehicle parts and components
- Recreational and sports equipment
- Aviation products
Insurance Scope
- Help the users to evaluate the product from the aspects of design, development, testing, and manufacturer
- Explain the relevant regulations and standards that apply to the products
- Insurance policy education
- Cost breakdown explanation associated with product liability lawsuits
Address: 2800 Forum Blvd Ste 4B, Columbia, Missouri 65203, United States
Haas & Wilkerson Insurance
Haas & Wilkerson Insurance is an independent agency that provides tailored insurance policies to customers from various industries, including garments, electronics, and machinery.
As an agency that represents the client’s interests, Hass invests the time to learn about the client’s business from the perspective of operation, risk management program, and risk tolerance.
Hass serves as an advocate and liaison between the clients and the insurance carrier. Once the claim arises, assign a dedicated consultant to each client to provide 1-1 guidance and support.
Product Categories
- Commercial vehicles
- Inland marine
- Liquors
Insurance scope
- Risk evaluation and management
- Custom-made policy
- Offer guidance and support along the claims process
Address: 4300 Shawnee Mission Parkway, Fairway, KS 66205, United States
Hi,
I am selling on Amazon as German based brand on amazon us in motorcycle gloves.
I need product liability insurance please assist me .
I’m researching product liability coverage between 1966 and 1978. What is the best way to make contact with potential providers during that period?
Hi,
I’m a seller on Amazon, currently living and selling in Australia (an Australian citizen) but looking to expand into the US. I’m wanting to get some product liability quotes for when I enter the US Amazon market.
Is there someone who could direct me?
Thank you
Andrew Langmaid