Products liability solutions
for manufacturers and distributors

Products liability insurance protects businesses against covered third-party bodily injury or property damage claims arising from products they manufacture, distribute, import, sell, process, or supply. It responds when a product allegedly causes harm — subject to the policy's terms, limits, and exclusions. Greenwood General places it wholesale for retail agents and brokers serving manufacturers, distributors, importers, and other product businesses.

It generally covers covered third-party bodily injury and property damage claims tied to a product the insured made, sold, distributed, handled, or imported — including manufacturing defects, design defects, and inadequate warnings or instructions. It typically pays covered damages and defense costs, subject to limits and exclusions, and closely relates to completed operations coverage. What actually applies depends on the policy form, class, and market.

Any business in the chain of commerce for a product can face exposure — manufacturers, distributors, importers, processors, wholesalers, private-label sellers, contract manufacturers, and retailers. Contracts and vendor agreements often require it. Because a claim can name every party in the chain, coverage is structured around the insured's actual role.

Yes. A distributor can be named in a product claim even though it did not manufacture the product, because injured parties often sue everyone in the chain of commerce. Distributors should also review vendor and supplier contracts for indemnification and additional insured requirements, but those agreements do not replace the distributor's own products liability coverage.

Generally, yes — and often more so. When products are imported, the foreign manufacturer may be difficult to reach, so the importer frequently becomes the primary target of a product claim. Imported products and foreign sales carry different exposure and require additional underwriting, including review of the products, testing, and any contractual risk transfer.

Products and completed operations coverage responds to claims that arise after a product has been sold or work has been completed. Products coverage follows the product once it leaves the insured's control; completed operations follows finished work. For product businesses, it is the core post-sale exposure, and it is typically written together with, or as part of, products liability.

Yes, a products-only option may be available for accounts that do not need broader premises and operations coverage — for example, some distributors or importers. Whether products-only or a broader commercial general liability structure is the better fit depends on the account and the market, and both are subject to underwriting.

An occurrence form generally responds based on when the covered bodily injury or property damage occurs, regardless of when the claim is reported. A Claims-Made form responds to claims first made during the policy period, subject to a retroactive date and reporting provisions. Products liability may be written either way depending on the market — the two handle claim timing differently, so continuity matters when switching forms.

On Claims-Made coverage, the retroactive date sets how far back covered events are recognized. Maintaining continuity of the retroactive date when renewing or switching carriers is essential, because a gap can leave prior products uncovered even if a claim is reported during the new policy. Brokers should provide the prior retroactive date and continuity information on every Claims-Made submission.

Generally, no. Standard products liability addresses covered third-party bodily injury or property damage — not the cost of recalling or replacing products. Recall costs are addressed by a separate product recall policy. Some products policies offer Limited Product Withdrawal Expense, but that is narrower than dedicated recall coverage.

Limited Product Withdrawal Expense is an endorsement, where available, that may provide a sublimit toward certain expenses of withdrawing a product from the market. It is not full product recall coverage — it is narrower in scope and limit, and a business with meaningful recall exposure typically needs a dedicated product recall policy. Confirm the exact terms and sublimit on the quoted form.

They can. Coverage may be available for qualifying discontinued products that remain in the marketplace after manufacturing or distribution has ended. Because a discontinued product can generate a long-tail claim years later, underwriting reviews the product, the volume still in use, and the loss history. Disclose discontinued products in the submission so the exposure is addressed.

It may, but foreign sales and imported products require additional underwriting. Territory affects both eligibility and pricing, and worldwide coverage may be available as an endorsement depending on the market. Disclose the split between domestic and foreign sales and where products are sold so the account is structured correctly.

For qualifying accounts, business personal property coverage may be available for contents, inventory, machinery, or stock through a related package placement — one structure offers up to $500,000, with minimum premiums starting around $500. It is presented as an optional related solution, not part of the liability coverage, and availability varies by account and market.

Limits are commonly structured at $1 million each occurrence and $2 million aggregate, though the right limits vary by account, contract requirements, and market. Deductibles may range from $0 to $25,000 depending on the risk, and split deductibles may be available. Higher limits through excess liability may be an option for qualifying accounts.

Yes, additional limits may be available through a separate excess liability placement for qualifying accounts. Excess capacity is underwritten on its own and depends on the class, the underlying products coverage, and loss history. Flag the requested total limit in the submission so the tower can be structured.

Underwriting generally wants completed ACORD applications and a products supplemental, a complete product description with intended use and end users, and sales and distribution information — annual sales, sales by product and territory, and foreign sales. Add manufacturing and quality-control detail, vendor and indemnification contracts, five years of currently valued loss runs, any claims-made retroactive date, and the requested limits and deductible. The more complete the file, the faster it quotes.

Products accounts are underwritten to the product and the supply chain, so turnaround depends on the class and the completeness of the file. A complete submission — application and supplemental, product description, sales splits, quality controls, contracts, and loss runs — routes to the right market the first time and quotes fastest. Complex, imported, or higher-hazard products may take additional review. Submit a risk to get started.