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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 2025?
Your small business is unique. That's why we offer product liability insurance from a wide range of insurance companies. Some carriers specialize in certain professions, while others operate in limited areas.
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.
Insureon works with 40+ U.S. insurance providers to find the specific coverage that is right for your business. As the #1 online agency for small business insurance, we've helped over 400,000 small businesses get protected with more than 1.5 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. 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.
Based on financial strength and overall rating, the best product liability insurance companies include:
- The Hartford: Rated A+ by AM Best. Located in Hartford, CT. Specializes in property and casualty insurance, group benefits, and mutual funds.
- Liberty Mutual: Rated A. Located in Boston, MA. Specializes in property and casualty insurance.
- Acuity: Rated A+. Located in Sheboygan, WI. Specializes in property and casualty insurance.
- Chubb: Rated A++. Located in Simsbury, CT, Charlotte, NC, and Phoenix, AZ. Specializes in property and casualty insurance, and business owner's policy.
- The Hanover: Rated A. Located in Worcester, MA. Specializes in business, specialty, and personal insurance.
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.
How much does product liability insurance cost?
Product liability coverage is often included when you buy a general liability policy.
General liability insurance costs an average of $42 per month for Insureon's customers.
The cost of product liability insurance depends on several factors, including:
- Type of products
- Business operations
- Your business's location
- Annual revenue
- Your policy's coverage limits and exclusions
- Claims history
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, including any endorsements.
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, Acuity, Nationwide, and Travelers.
Even if your store wasn't directly responsible for a product defect 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, Acuity, and Nationwide for product liability coverage.
In this industry, 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 policy limits on their general liability insurance and product liability coverage. 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, Liberty Mutual, 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 policy covers daily operating costs and other expenses when 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 and spoilage. High-risk businesses sometimes need to purchase this type of insurance as a standalone policy.
Manufacturing
Manufacturers often rely on Liberty Mutual, Acuity, AmTrust, and The Hanover 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 Hanover.
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, or vendor.
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
Don't see your profession? Don't worry. We insure most businesses.
Best product liability insurance carriers by state
Some providers only offer insurance in select areas, so your state is an important consideration when it comes to the best product liability insurance. 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 Chubb Liberty Mutual | |
The Hartford Liberty Mutual Acuity | |
The Hartford Liberty Mutual Chubb | |
The Hartford Chubb Liberty Mutual |
Best carriers for bundling product liability insurance
Many insurance companies offer a discount when you bundle small 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, which includes both general liability coverage and commercial property insurance at a discount. 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 optional coverages, such as:
- Data breach
- Business income for off-premises utility services
- Other specialized policies
Liberty Mutual
Liberty Mutual offers both a business owner's policy and a commercial package for small to mid-sized businesses, available to more than 300 types of businesses. You can also add other coverages, such as:
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 (E&O).
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
- Earthquake, in selected states
- 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 defective products, which include design defects, manufacturing defects, and marketing defects.
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 receive general liability insurance quotes from trusted providers, with options to add this coverage.
A licensed insurance agent will help you find policies that match your small business's unique insurance needs. Most businesses can get same-day coverage and easily download a certificate of insurance, giving you financial protection and peace of mind to focus on your work.
Updated: June 25, 2025
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