Product Liability Insurance

Find The Best Product Liability Insurance

Companies are responsible for what they sell. Do you manufacture or sell goods in Ontario or another province? You could be liable if your product makes someone ill, is defective or causes injuries.

Product liability insurance can help protect your business against allegations. It can mitigate losses from legal action because of faulty consumer goods.

At ThinkInsure, we will help you get affordable product liability insurance. We’ll help you reduce risk and protect your business. Contact us to compare quotes from the top providers in Canada to save more.

What Is Product Liability Insurance?

Product liability insurance is a type of liability coverage. It is for companies that sell or manufacturer goods. Get protection against claims of injury and property damage by goods sold to customers, vendors, businesses, and third parties.

Do I Need Product Liability Insurance In Canada?

If you sell products in Canada, you need product liability protection. As soon as you start selling goods to the public or to other companies, you need coverage. There is a possibility of a lawsuit if something goes wrong. This insurance gives you the protection to withstand potential issues.

What Types Of Businesses Need Product Liability Insurance?

Any corporation, SMB, home-based business, or entrepreneur that’s sells items should have this protection. Whether you sell food, clothing, furniture, tools, sports equipment, shoes, and anything else, this is for you.

B2C

Any large or small business that sells directly to customers and the general public (online or offline) requires protection. This includes :

Vendors, wholesalers, distributors
Bakeries, variety stores, grocery stores, pet stores
Restaurants, coffee shops
Gift shops, florists
Clothing stores, shoe, stores

B2B

If you produce an item and sell to other businesses, you still need this coverage :

Publishers, software developers
Website developers and graphic designers
Material suppliers, equipment suppliers

Product Liability Insurance FAQs

How Does Product Liability Insurance Protect My Business?

It covers legal representation, court fees and damages awarded because of a product issue. It provides protection against lawsuits from customers and other people claiming a defect or malfunction caused injury or damage.

What Does Product Liability Insurance Cover?

It pays for legal fees and damages because of faulty product claims. Common situations include :

Goods that cause bodily injury to customers or end users.
Malfunctions that cause property damage.
Food or beverages that cause food poisoning or illness.

What Does Product Liability Not Cover?

There are certain exclusions that are not part of a policy :

Warranty
Recall and replacement costs
Intentional violation of government regulations
Professional negligence
Industry penalties and fines

How Much Does Product Liability Insurance Cost?

On average, you can expect to pay about 25 cents per $100 of retail sales. For example - you sell $500,000 worth of good each year. You can expect to pay about $1,250 annually. Costs could be higher if you sell items that are greater danger. Premiums could be lower if you sell low risk products.

What Factors Impact Product Liability Insurance Cost?

The amount of potential danger associated with your goods will have a significant impact on how much you pay. Here are some of the top factors that will impact costs :

Type and number of units sold
Size of distribution
Industry and company size
Policy limits
Your insurance claims history
Factors related to shipping, packaging, storage, safety measures in place and more

How Much Product Liability Insurance Do I Need?

The amount you require will depend on the size and reach of your business. The more you sell the higher coverage limits you should have to protect yourself. Limits can range from as little as $500,000 to $5 million or more.

Do All Companies Need Product Liability Insurance?

If you sell any type of goods (food, clothing, gadgets, etc.) you should have this protection. A policy will protect your company against legal action stemming from any issues that arise.

Is Product Liability Included In General Liability Insurance?

It depends. Most general liability insurance policies also include product liability coverage. If you sell something specialized or riskier, additional protection may be required.

Is Product Liability Insurance Required By Law?

It is not legally required for businesses to have product liability insurance. However, commerce partners, suppliers, and manufacturers may require you to have it as part of your business agreement.

Types Of Product Liability Claims

There are three common types of allegations made :

Manufacturing Flaws

There is an issue with the manufacturing process that caused a malfunction. You are at risk if a product were to break or malfunction during use. If it causes an injury or damage, a lawsuit could be filed.

Design Defect

The design is thought to be unsafe. It should have never made it to market in its current condition.

Insufficient Warnings Or Directions

There was not a proper warning or safe use instructions. Failure to provide a warning and instructions for how to use the item could cause injury or damage.

Product Liability Insurance Examples

Design flaw : A microwave, that when left on for too long, shorts out and starts a fire.
Manufacturing : Manufacturing toys with sharp edges – potentially causing cuts and scrapes to kids.
Improper Warning : Household cleaners not including proper storage instructions. This could lead to the cleaner reacting to other chemical or environmental factors.

Tips To Get Cheap Product Liability Insurance

Here are some simple to implement tips to get lower premiums for your policy :

Understand your threats : No two products are the same. Understand your potential risk factors and exposure.
Speak with an advisor : Our team can provide you with expert advice and guidance.
Compare quotes : Comparing your options allows you to see what insurers can offer and who has the lowest price.
Shop around to explore options : Understand the types of coverage available to your business from different insurers.

Get A Product Liability Insurance Quote

Get the best product liability insurance from the insurers in Canada. We give you more options, regardless of your industry or what you sell.

Get a quote today and save more! Call toll-free 1-855-550-5515 or request a quote online.

Get quotes for product liability insurance from top insurers in Canada and save more.