About $45 a month
General liability with product coverage
Insureon median for small business customers, updated April 2026
Coverage guide
Product liability insurance
For manufacturers, retailers, wholesalers, crafters and online sellers: what product liability covers, what it costs, which marketplace and federal rules apply and what to have ready for a quote.
- Independent brokerage: we compare several insurers
- Licensed agents review every application
- No cost and no obligation to buy
Get product liability insurance quotes
What similar businesses pay
- General liability with product coverage
- About $45 a month
- Amazon and e-commerce sellers
- About $46 a month
- Manufacturers
- About $50 a month
Published benchmarks, not quotes. Your price depends on underwriting.
Cost
What product liability insurance costs
About $46 a month
Amazon and e-commerce sellers
Insureon general liability figure for online retailers, updated April 2026
About $50 a month
Manufacturers
Insureon general liability median for manufacturers, updated July 2025
About $68 a month
General liability
The Hartford average for small business customers ($810 a year), updated February 2026
Product liability is usually not a separate bill. Insureon says it is typically included in general liability, and NEXT does not sell it on its own. Insureon’s median for small business customers is about $45 a month, or $538 a year, with 22% paying under $30 and 41% paying $30 to $60. Manufacturers buying through Insureon pay a median of about $50 a month. The Hartford’s average for a standalone general liability policy is $810 a year. Riskier goods cost more: Insureon says sellers of eggs, seafood and meat pay more because of contamination risk.
What moves your price
- The type of products you sell and how they could hurt someone
- Your place in the supply chain: manufacturer, distributor or retailer
- Annual sales revenue and business size
- Where you are located: Insureon customers in Florida pay about $55 a month against $42 in California
- Your limits: 85% of Insureon customers choose $1 million per occurrence and $2 million aggregate
- Your claims history
Who it’s for
Who needs product liability insurance
You sell a product someone else made
Retailers, wholesalers and resellers are part of the supply chain and can be sued alongside the maker. NEXT notes that product claims are often strict liability, so you can be liable even if you were not negligent, and you still pay to defend the case if you are not at fault.
A product you sold starts a fire
A defective charger, heater or appliance overheats in a customer’s home. NEXT gives exactly this example for an online store that did not make the appliance. The claim is for property damage and any injuries, not for the cost of the product itself.
A child chokes on a toy part
Beyond the lawsuit, the CPSC requires manufacturers, importers, distributors and retailers to report choking incidents involving small parts in toys or games that lead to death, serious injury, loss of breathing or medical treatment.
Food, soap or cosmetics cause a reaction
A crafter’s bath soap triggers an allergic reaction, or a food product makes someone sick. NEXT names craft vendors and wholesalers of expired food among the businesses that face these claims, and Insureon says higher-risk foods cost more to insure.
You sell on Amazon or under your own brand
Amazon requires $1 million of commercial liability once monthly sales pass $10,000, and from November 2, 2026 for children’s, cosmetic, ingestible and lithium battery listings at any sales level. Goods sold under your own brand are your product on a standard policy.
Coverage
What product liability insurance covers
Injuries caused by your product
Pays damages and medical costs when a product you make, sell, handle or distribute injures someone. On the standard ISO form this sits in Coverage A of general liability.
Property damage caused by your product
Pays for damage your product causes to other people’s property, such as a home fire from a faulty device or water damage from a failed fitting.
Defense costs
The insurer defends covered suits even if they are groundless. Under ISO form CG 00 01 04 13, defense expenses are supplementary payments that do not reduce your limits.
Warning, instruction and warranty claims
The ISO definition of your product includes warranties about its fitness or performance and the providing of, or failure to provide, warnings or instructions, so a missing warning label is within scope.
A separate products aggregate
Product and completed-work claims draw on the products-completed operations aggregate, not the general aggregate, so a slip-and-fall claim at your shop does not use up your product limit.
Products sold in the U.S. that cause harm abroad
The ISO coverage territory reaches anywhere in the world for goods made or sold by you in the U.S., Puerto Rico or Canada, if the suit is brought there or settled with the insurer’s agreement.
Higher limits
An umbrella adds limits above general liability when a retailer, distributor or your own product risk calls for more than $1 million.
Product recall, bought separately
Insureon says recall insurance can cover collecting and disposing of unsafe products and crisis communications, and can be added as an endorsement. Product liability itself does not pay these costs.
What it doesn’t cover
- Recalling, withdrawing, inspecting, repairing or replacing your product (ISO exclusion n)
- Damage to your own product arising out of the product itself (ISO exclusion k)
- Loss of use of other property because your product is defective or fails to perform, where nothing is physically damaged (ISO exclusion m)
- Injury to your own employees, which belongs on workers’ comp
- Injury or damage expected or intended by you
- Most pollution claims
Rules
Requirements and filings
No federal or state law generally requires product liability insurance, according to NEXT. The rules that bite come from marketplaces, contracts and the CPSC’s reporting duties.
| Requirement | Applies to | What it means |
|---|---|---|
| Amazon sales threshold | Amazon.com sellers with gross proceeds over $10,000 in any month | Commercial liability of at least $1 million per occurrence and aggregate, obtained within 30 days, per Amazon Seller Central’s 2026 announcement. |
| Amazon enhanced safety categories | Sellers listing children’s, cosmetic, ingestible or lithium battery products, from November 2, 2026 | $1 million per occurrence and aggregate covering those products regardless of sales volume; sellers based in mainland China must buy through Amazon Insurance Accelerator. |
| CPSC duty to report | Manufacturers, importers, distributors and retailers of consumer products | Report defects that could create a substantial hazard, unreasonable risks of serious injury or death and rule violations within 24 hours of obtaining reportable information, per the CPSC. Failing to report can bring civil or criminal penalties. |
| CPSC lawsuit reports | Manufacturers and importers | Certain lawsuits must also be reported, subject to the time periods in section 37 of the Consumer Product Safety Act, per the CPSC. |
| Supplier and vendor contracts | Manufacturers, wholesalers and distributors selling to other businesses | Insureon says product liability is often required in contracts with suppliers and vendors. Check required limits and additional insured terms before you sign. |
Compare product liability insurance options.
One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.
Pay less
How to lower the cost
- Buy product liability inside general liability or a business owner’s policy; Insureon says a BOP costs less than buying the policies separately.
- Pay the annual premium in full, which Insureon says many insurers discount.
- Test products, tighten quality control and put clear warnings and instructions on every label, the steps Insureon recommends to prevent claims.
- Work with trusted suppliers, importers and distributors, which Insureon lists among its ways to reduce product claims.
- Keep an incident and complaint log so you can meet the CPSC’s 24-hour reporting window and show underwriters how you handle problems.
- Compare quotes at renewal; Florin is an independent broker that compares options from several insurers.
Before you start
What underwriters ask for
- A list of every product you make or sell, with descriptions
- Annual sales, split by product line
- Who makes each product and where, including any overseas suppliers
- Whether you sell under your own brand or private label
- Sales channels: Amazon, your own site, wholesale or retail stores
- Labels, instructions, warnings and any test reports or certificates
- Past recalls, complaints and loss runs from prior insurers
- The limits and certificate terms your marketplaces and buyers require
Common questions
Product liability insurance: questions
Is product liability included in general liability?
Usually. Insureon says it is typically part of a general liability policy, and NEXT includes it in general liability and does not sell it on its own. Standalone policies exist but are uncommon.
Can I be sued for a product I did not make?
Yes. NEXT notes that retailers, wholesalers and distributors can be held responsible for products they sell, often under strict liability, even if they were not negligent.
Does product liability insurance pay for a recall?
No. The standard ISO general liability form excludes the cost of recalling, inspecting, repairing or replacing your product. Insureon says product recall coverage can be added separately.
How much product liability coverage do Amazon sellers need?
At least $1 million per occurrence and in the aggregate once gross proceeds pass $10,000 in a month. From November 2, 2026, Amazon also requires it for children’s, cosmetic, ingestible and lithium battery listings at any sales level.
What limits do most small businesses buy?
Insureon says 85% of its customers choose $1 million per occurrence and $2 million aggregate. It suggests considering higher limits because product lawsuits are costly to defend.
Do I have to tell the CPSC about an injury claim?
Possibly. The CPSC requires manufacturers, importers, distributors and retailers to report certain defects, hazards and choking incidents within 24 hours, and its staff advise “when in doubt, report.”
Get covered.
Tell us about your business once. We compare options and a licensed agent follows up, usually the same day.
Sources (9)
- Insureon: product liability insurance cost (updated April 24, 2026)
- Insureon: manufacturing insurance costs (updated July 21, 2025)
- Insureon: best product liability insurance for small businesses (updated March 17, 2026)
- Insureon: product recall insurance coverage
- NEXT: product liability insurance (2026)
- The Hartford: how much is liability insurance for a business (updated February 25, 2026)
- Amazon Seller Central: new commercial liability insurance requirements effective November 2, 2026
- CPSC: duty to report, rights and responsibilities of businesses
- ISO commercial general liability coverage form CG 00 01 04 13 (sample, Sonoma County)
Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.