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Business Insurance

What Is Product Liability Insurance?

Truscott Insurance Solutions
July 25, 2026
4 min read

Product liability insurance protects your business against claims that a product you made, sold, or distributed caused injury or property damage. Even businesses that only resell products can be pulled into these claims.

What it covers

If a customer is harmed by a defective or dangerous product, they can seek damages, and defending such a claim is expensive even when your business did nothing wrong. Product liability coverage generally pays for legal defense and any settlement or judgment up to your limits.

Who needs it

Manufacturers clearly need it, but so do wholesalers, distributors, and retailers, because liability can follow a product along the chain. It is often bundled with general liability for businesses that sell physical goods.

What Truscott recommends

If your business puts products into customers' hands, this coverage protects you from claims you cannot fully control. Explore business insurance or start a quote.

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