5 Cities Insurance
Product Liability Insurance for California Businesses
Product liability insurance covers claims that a product you manufacture, distribute, or sell caused bodily injury or property damage. It can attach to general liability or be written separately for higher-hazard products. Liability can extend beyond manufacturers to anyone in the chain of distribution.
Coverage line pending confirmation
This coverage line is shown for educational purposes. The agency is confirming its availability and authority before it is published as an offered line. Request a quote or ask a question and we will confirm what applies to your business.
Who may need this coverage
- Manufacturers and assemblers
- Wholesalers, distributors, and retailers of products
- Businesses that import or re-label products
- Companies whose products could foreseeably cause injury
What it may cover
Coverage depends on policy wording, exclusions, limits, and underwriting. The following are commonly addressed, subject to the policy terms:
- Bodily injury claims from a defective product
- Property damage caused by a product
- Defense costs for covered product claims
- Recall-related costs where endorsed
Common exclusions and limitations
- Damage to the product itself
- Costs to recall or the product's diminished value, unless endorsed
- Expected or intended injury
- Professional errors in design — addressed by professional liability
Relevant optional endorsements
- Product recall coverage
- Broadened named-insured and additional insureds
- Specific product schedules
Factors that may affect pricing
- Product type and hazard level
- Role in distribution (manufacturer vs. retailer)
- Sales volume and markets
- Claims history
Information typically needed to request a quote
- Product description and intended use
- Your role in the distribution chain
- Annual sales volume
- Prior product claims
A realistic example
Situation: A distributed component overheats and damages a customer's equipment, prompting a claim.
How coverage may respond: Product liability can address the resulting injury or property damage, subject to policy terms.
FAQ
Product Liability questions
Explore Product Liability for your business
Request a quote with this coverage preselected, or ask a coverage question.