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Best product liability insurance for small businesses
Insurance companies often include product liability insurance when you buy a general liability policy. Find the best U.S. insurance company for your business's risks, your budget, and your products.
What are some of the best companies selling product liability insurance in 2026?
Your small business is unique. That's why we offer product liability insurance from a wide range of insurance companies.
Many companies include product liability coverage in their general liability insurance policies. Other times, you may need to add it as an endorsement or buy a standalone policy.
Depending on the carrier and other factors, you might see this coverage called products-completed operations insurance. That's because it also provides coverage for completed services, such as an appliance installed by your business or a swimming pool built by your company.
Insureon is the #1 digital agency for small business insurance, partnering with 40+ U.S. insurance providers to find the best insurance coverage for your needs. We've helped over 450,000 small businesses get protected with more than 1.8 million policies.
When you fill out our easy online application, we do the work for you by retrieving quotes from the companies that best match your business needs. The most important factors are:
- Best-rated product liability insurance companies, in terms of financial strength
- Best providers for your industry
- Best providers for your business's location
- Best carriers for bundling product liability insurance
Many of our insurance partners offer a business owner's policy (BOP), which is an opportunity to buy general liability insurance, product liability insurance, and commercial property insurance together at a discount.
Some carriers specialize only in certain professions, or operate in limited regions of the country. All of our carriers are rated excellent or superior by AM Best, a global credit rating agency specializing in the insurance industry.
Find product liability insurance for your small business
Best-rated product liability insurance companies
When buying product liability insurance with Insureon, you'll get quotes from some of the biggest names in the industry. We do the research for you, providing customized quotes only from those carriers who match your risks.
Keep in mind, the cheapest policy isn't always the best choice, as coverage options differ by more than price alone.
Based on financial strength and overall rating, the best product liability insurance companies include:
The Hartford
Acuity
- AM Best rating: A+
- Customer rating: 96% claims satisfaction
- Coverage area: 30+ states, based in the Midwest
Liberty Mutual
- AM Best rating: A (Excellent)
- Customer rating: 90% highly satisfied with claims process
- Coverage area: Nationwide
Chubb
- AM Best rating: A++
- Customer rating: 98% satisfaction rate
- Coverage area: Nationwide
How much does product liability insurance cost?
General liability insurance costs an average of $45 per month for Insureon's customers, and it usually includes product liability coverage.
During underwriting, factors that can affect product liability insurance costs include:
- Type of products
- Business operations
- Annual revenue
- Business location
- Policy limits and deductibles
- Claims history
- Policy exclusions
Verified product liability insurance reviews
Hear from customers like you who purchased product liability insurance.
Best product liability insurance carriers by industry
When searching for product liability insurance for your small business, your industry is a key factor.
A provider who knows the risks of your specific profession can help make sure you get the right coverage. That includes any endorsements you might need, such as product recall insurance to cover the cost of recalling a defective product.
Here are the recommended providers of product liability insurance for our top industries:
Retail
For retailers, product liability insurance is frequently sourced from The Hartford, Liberty Mutual, and Hiscox.
Even if your store wasn't directly responsible for a product that injured a customer, your shop could still be held accountable due to strict liability. In fact, any business in the supply chain can become involved in a product liability claim.
If a customer has an allergic reaction to cosmetics sold at your store, or if a candle you sold damages an expensive piece of furniture, this policy will cover your financial losses.
It's especially important for dispensaries, grocery stores, and other businesses where expired, mislabeled, or defective products could make someone ill or lead to an injury.
Construction and installation
Construction businesses and installation contractors regularly look to The Hartford, Liberty Mutual, and Acuity for product liability coverage.
In these industries, it's more often referred to as products-completed operations coverage, as it insures your completed work. If a newly installed HVAC system leaks and damages a customer's floor, or if faulty electrical work causes a fire, this policy will pay for damages and legal fees.
Because of the high risks of working in customers' homes and offices, contractors may need higher coverage limits on their general liability insurance and product liability insurance. Your clients and state licensing requirements may also mandate a certain amount of coverage.
Food service
Restaurants, bars, and other food service businesses have several strong options when it comes to product liability insurance, including The Hartford, Nationwide, and Travelers.
Product liability insurance covers expenses related to allergic reactions, food poisoning, and similar incidents. For instance, if customers at your ice cream shop become ill due to an improperly cleaned soft serve machine, this policy would pay for your business's legal expenses.
Carriers offer business interruption insurance, also called business income coverage, as another important add-on to your general liability insurance policy. This endorsement covers lost profits and daily operating expenses if a fire or other covered property claim forces your business to close temporarily.
Expect to pay more for a product liability insurance policy if you sell eggs, seafood, meat, or other foods with a higher-than-average risk of contamination.
Manufacturing
Manufacturers often rely on Liberty Mutual and The Hartford for product liability insurance and other types of coverage.
If a defective product goes to market and harms a customer, product liability insurance will help pay for your legal costs, including attorney's fees, court costs, and a settlement or judgment.
Product liability insurance is one of the most important policies for a manufacturer, since your livelihood depends on your products. It's often required in contracts with suppliers and vendors.
You can add product recall insurance to your policy to cover expenses associated with a recall. It would help pay for disposal costs and PR efforts to mitigate any damage to your company's reputation.
Wholesale and distribution
Wholesalers and distributors often buy product liability coverage, along with general liability insurance, from Liberty Mutual and The Hartford.
As with retailers, product liability lawsuits can affect wholesalers and distributors even when they weren't directly responsible. You might also need this coverage to sign a contract with a manufacturer, supplier, vendor, or importer.
The risks associated with your products determine the amount of coverage you need. For example, food distributors should be prepared with a robust policy to defend against legal costs in case a contaminated batch of your products sickens customers.
Top professions that need product liability insurance
Best product liability insurance carriers by state
Some providers only offer coverage in select areas, so your state is a key consideration when it comes to the best carriers for product liability insurance.
Your business insurance costs also depend in part on where you're located, as regional costs of healthcare, litigation, and other expenses directly impact claims.
Here are the most popular small business insurance companies for our top five states, based on the number of general liability policies sold:
| State | Top 3 product liability insurance companies |
|---|---|
The Hartford Liberty Mutual Acuity | |
The Hartford Hiscox Liberty Mutual | |
The Hartford Acuity Liberty Mutual | |
The Hartford Liberty Mutual Hiscox | |
The Hartford Hiscox Liberty Mutual |
Best carriers for bundling product liability insurance
Many insurance companies offer a discount when you bundle business insurance policies. In most cases, product liability insurance is already included as part of your general liability policy.
The best package for small businesses is a business owner's policy. A BOP includes both general liability coverage and commercial property insurance at a lower rate than buying the policies separately. Most small, low-risk businesses are eligible for a BOP.
Another option is a commercial package policy (CPP), which is designed for businesses with higher risks. It offers a broader range of coverage options and higher limits than a BOP.
These insurance carriers offer some of the best options for product liability packages:
The Hartford
The Hartford includes business interruption insurance in its business owner's policy, which most other carriers don't automatically include.
You can add other coverages, such as:
- Data breach insurance
- Business income for off-premises utility services
- Workers' compensation insurance
- Professional liability insurance (also called errors and omissions insurance or E&O)
Liberty Mutual
Liberty Mutual offers both a business owner's policy and a commercial package policy for small to midsized businesses, available to more than 300 types of businesses.
You can add other coverages, such as:
- Commercial auto insurance
- Equipment breakdown coverage
- Inland marine insurance
- Commercial umbrella insurance
- Workers' compensation insurance
Acuity
Acuity's version of a business owner's policy is the "Bis-Pak," which combines property insurance, general liability, and business income coverage. This package includes a few extras, such as coverage for additional business locations or projects, and $10,000 in ordinance or law coverage.
You can customize your policy with a range of property and liability endorsements, or add on other types of coverage such as employment practices liability insurance (EPLI) or errors and omissions insurance.
Travelers
Travelers sells a business owner's policy with an option for lost income coverage, along with additional insurance options:
Chubb
Chubb's business owner's policy is available for small business owners with up to $30 million in revenue across more than 500 different professions.
The company offers a wide range of customizations, including:
- Privacy and data breach
- Employment practices liability
- Electronic data liability
- Equipment breakdown
- Professional liability insurance, for certain professions
Find product liability insurance for your small business
What are the risks of not having product liability insurance coverage?
A product liability lawsuit could devastate a small business that doesn't have sufficient coverage. For example, a dresser sold at your furniture store could tip over and harm a child. If the customer sues your shop, you could end up paying thousands of dollars in legal costs out of pocket.
Product liability insurance covers:
- Bodily injuries caused by a product
- Property damage caused by a product
- Illness or wrongful death caused by a product
- Other harm, including financial losses
Any business in the supply chain is vulnerable to product lawsuits, which is why this coverage is a crucial part of risk management. It covers a wide range of product defects, including:
- Design defects, such as unstable furniture
- Manufacturing defects, such as loose wiring in a toaster
- Marketing defects, such as a mislabeled supplement
Product liability insurance is usually included in general liability insurance, which is another key policy. General liability covers common third-party accidents, such as a customer who slips on a wet floor or trips over a loose rug at your business.
Small business owners often buy general liability insurance coverage because they need it to sign a client contract, get a license for their profession, or rent a commercial space. Even when it's not required, the potentially devastating cost of a lawsuit makes it a good idea to carry both of these coverages.
Business owner’s policy
A business owner’s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately.
Workers’ compensation insurance
Workers’ compensation insurance covers medical costs and lost wages for work-related injuries and illnesses. This policy is required in almost every state for businesses that have employees.
Professional liability insurance
Professional liability insurance, also called errors and omissions insurance, protects small businesses against the costs of client lawsuits over unsatisfactory work.
Commercial auto insurance
Commercial auto insurance covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.
Cyber insurance
Cyber liability insurance, also called cybersecurity insurance, protects small businesses from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.
How do I find the right product liability insurance?
It's easy to get product liability insurance with Insureon. Fill out our easy online application to get quotes for general liability, workers' comp, and other policies in one place from trusted providers, with options to add product liability insurance and other specialized coverages.
Our expert insurance agents can answer any questions you might have. They'll help you find the right insurance solutions for your profession, your budget, and any unique risks.
Most small business owners can get insured within 24 hours of applying for quotes. Policyholders can download a certificate of insurance (COI) at any time for proof of coverage and peace of mind.
Updated: March 17, 2026
The figures on this page are the median cost of policies purchased by 40,000 of Insureon's customers. The median offers a better estimate of what your business is likely to pay because it excludes high and low outliers. Most of our customers have five years or less in business, fewer than five employees, and annual revenue ranging from around $50,000 to more than $200,000.
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