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Product Liability Insurance

Product Liability and Product Recall Insurance

CGIS Brokers Commercial Product Liability Insurance for Manufacturers

Product liability insurance protects the business from claims related to the manufacture, supply, distribution, wholesale, and sale, i.e. everyone involved in the supply chain or a product, food, Product-Liability-Insurancemedicines or other goods made available to the public. Product liability coverage covers the manufacturer’s or seller’s liability for losses or injuries to a buyer, user, or bystander, caused by a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn. It traditionally was limited to products as tangible personal properties, however, in recent years the definition has been stretched to include certain intangibles like real estate, pets, etc.

Anyone in the supply chain faces the threat of litigation and loss of income, in the event of a product failure. Product Recall Policy Coverage provides first and third party product recall expenses, including public relations, damage control, costs associated with the transportation of defective products, and additional expenses to perform the repairs and refunds with the defective product.

Product Recall policies also include coverage for legal defense and detailed internal investigations. Unlike Product Liability claims, which kick in after physical damage or bodily injury to a third party, the Product Recall coverage can kick in much sooner, as soon as a product defect is identified.

The manufacturer of the product would typically carry their own insurance, however, if the product is made overseas, and is directly imported, it will be difficult to pursue litigation for a product claim. In such cases, the company who is the direct importer, is considered to be the manufacturer, and as such will carry the product liability insurance.

Commercial Global offers competitive quotes on product liability insurance for providers of medical equipment and medical practitioners.


Call us today at 281-612-5974 for your FREE Product Liability Insurance Risk Analysis