Manufacturer Product Liability Insurance
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- Meet National Compliance Standards
- Defend Against Defect Claims
- Satisfy Vendor Requirements
- Scale with Confidence
What is Manufacturer Product Liability Insurance?
Product liability insurance is designed to protect your business from the hefty expenses of product-related claims. It’s a type of business insurance for manufacturers, wholesalers, and retailers that helps:
- Pay for product-related claims
- Cover the cost of customer injuries and property damage
- Protect against mislabeling lawsuits
- Easily fulfill retailer compliance requirements
Whether you’re crafting products by hand or running a full production line, product liability insurance provides peace of mind and protection for the business you’ve built.
Who Needs Manufacturer Product Liability Insurance?
Regardless of your company’s production volume, if you manufacture physical products, this coverage is crucial for safeguarding your business. Even if you make a small component for a bigger product that someone else later assembles, you can still be held liable for damages that occur after assembly. Some of the manufacturing industries we cover include:
Did you know you can be held liable even without fault? Even if a customer can’t prove that your company was negligent, you can still be held liable for injuries caused by defective products. Strict liability extends to everyone in a supply chain, from manufacturers to retailers.
Why Do Manufacturers Need Product Liability Insurance?
As a manufacturer, you’re on the front lines of product responsibility. You can be held liable for injuries or damages caused by your products, regardless of fault — but you don’t have to go it alone. Product liability insurance is built to serve as your production partner.
Meet Retailer Requirements: Having coverage means you’re always ready to meet vendor requirements, keeping your products on shelves and in online marketplaces
Protect Against Product Defects: If a customer is injured by a product you made, your policy can cover legal defense, medical costs, and damages
Mitigate Labeling Mistakes: If incorrect usage instructions lead to an allergic reaction, your policy can cover treatment costs and protect your brand’s reputation
Offset Recall Costs: Product recall insurance can help cover related expenses, legal claims, and third-party damages if a production issue triggers a recall
Create with Confidence: Worry less about what could go wrong and more about growing your business and getting your product to the right people
How Much Does Manufacturer Product Liability Insurance Cost?
With Insurance Canopy, most small- to mid-sized manufacturers pay, on average, between $700 and $3,000 per year for product liability coverage. Coverage costs depend on your company’s:
- Annual Revenue: Higher sales volume increases risks, which can raise your premiums
- Product Types: High-risk or high-value items, like supplements or jewelry, may cost more to cover
- Claims History: Previous claims may indicate higher risk, which can impact your rate
- Desired Coverage Limits: Like any upgrade, increasing limits or adding extra coverage comes with additional costs
- Additional coverages: Optional coverages, like product recall and cyber liability, come with added protection and premium
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026 -
Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026 -
Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026 -
Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026 -
Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025 -
Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025 -
So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025Great experience, quick and easy to understand with what I needed for my business. Highly recommend!
FrankLynn Rae
October 28, 2025Very helpful customer service! Prompt, punctual, effective! No bots or long waits to get assistance.
Maria Ciccone
October 19, 2025 -
Canopy insurance has made affordable, band insurance needed for major venues. Thank you for your fast and easy service Stan Zizka's Del Satins
stan zizka
October 5, 2025Getting a vendor policy was quick and fairly priced compared to other quotes.
Kristine Fullerton
October 3, 2025Thank you so much
Steve Monreal
July 11, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025 -
Very easy to renew policy
Elyce Nissinoff
June 18, 2025Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025
Get custom coverage for your business with a fast application and licensed agent support.
Product Liability Insurance for Manufacturing Businesses
Manufacturing insurance with Insurance Canopy helps protect you against accidents and product-related claims. It includes both general and product liability insurance, with up to $1 million in coverage per claim (occurrence) and $2 million total per policy year (aggregate).
Need more protection? Our licensed agents are ready to help you customize your policy with higher limits and additional coverage options your business needs. Insurance Canopy’s base policies include both general liability and products and completed operations coverage.
General liability insurance is designed to cover third-party injury or property damage claims that are not directly caused by your products, such as if someone slips while visiting your warehouse. It can also help cover legal costs if you’re accused of advertising injury, like copyright infringement.
Product liability insurance helps protect you from claims related to the products you make, even if you only manufactured part of them. If a customer claims damages caused by something you sold, this coverage can pay for legal defense, medical bills, and settlements.
- Product recall insurance: Helps you act fast if something needs to be pulled from the market
- Commercial property insurance: Protects the space and equipment you rely on for production
- Workers compensation insurance: Designed to cover medical bills, lost wages, and recovery costs if someone’s hurt on the job — legally required in most states if your business has employees
- Inland marine insurance: Helps protect tools, equipment, and products while on the move or off-site
- Cyber liability insurance: Helps cover the fallout from cyberattacks and data breaches
- Manufacturers E&O insurance: Can protect your business if a design, advice, or service mistake costs a client money
- Amendment of Coverage Territory endorsement: Extends coverage worldwide for claims outside the U.S. — helpful if your products sell internationally or reach overseas customers
- Primary & non-contributory endorsement: Ensures your policy pays first on a claim, before anyone else’s — often required when other businesses want your coverage to apply before theirs
- Waiver of subrogation: Stops your insurer from pursuing a third party to recover claim costs — commonly requested to keep business relationships smooth
- 30-Day cancellation notice: Notifies a third party, usually an additional insured, that your policy will be canceled within 30 days — often required in agreements or lease contracts
Let peace of mind inspire your next product.
- Apply online in 10 minutes or less
- Get instant access to your policy
- Enjoy A+ rated coverage
- Access your online dashboard 24/7 to download your certificate of insurance or add additional insureds
FAQs About Product Liability Insurance for Manufacturers
What Is The Difference Between General Liability and Product Liability Insurance for Manufacturers?
Product liability is coverage for claims caused by your product, while general liability is coverage for claims caused by your business operations. Product liability insurance is designed to cover injuries or damage caused by a product you make or sell, and general liability is made to cover slips and falls, property damage, and other operational risks.
What Types of Claims Does Manufacturer Product Liability Insurance Cover?
Product liability insurance can protect you from claims stemming from defects or mislabeling related to a product you manufacture. It can help cover medical expenses, defense costs, and damages in cases of improperly labeled products, faulty product design, false advertising, and other types of product liability claims.
Does Manufacturer Liability Insurance Cover Product Recalls?
No. To protect against a product recall triggered by a defect you create, adding product recall coverage to your policy can help cover expenses related to pulling a product from shelves, alerting customers, and disposing of faulty products.
Am I Covered for Injuries Caused by a Product I Made and Sold Years Ago?
Potentially, yes. Insurance Canopy’s product liability coverage is occurrence-based, meaning it generally applies if the covered bodily injury or property damage occurred during your policy period — even if the customer doesn’t file a claim until years later.
Do Retailers or Distributors Require Manufacturers to Carry Product Liability Insurance?
Before they stock a company’s products, retailers and distributors often require manufacturers and artisans to provide proof of product liability insurance. Insurance Canopy’s manufacturers liability policy is equipped with the coverage and limits to meet common insurance requirements.
However, some partners may require higher limits or additional coverages, like product recall or named additional insureds (which Insurance Canopy offers), so it’s essential to review their specific terms to ensure full compliance.
Do I Need Insurance if I Design a Product but Don't Manufacture It Myself?
Yes. Even if you don’t physically make or manufacture the product and you only design it, you could be held liable for injuries or damages caused by it. Anyone in the supply chain, from designer to retailer, can be named in a lawsuit.
Insurance helps protect your business from costly lawsuits and recalls, whether your name is on the packaging or not.
Still have questions regarding our policies? Feel free to reach out to our licensed insurance agents. We are available Monday through Friday from 8am–8pm ET.
Product liability lawsuits happen when a product causes bodily injury or property damage,
When you sell a product, you’re also taking on responsibility for what happens
You make great food, maybe even the best. But here’s the uncomfortable truth: