AdvisorSmith evaluated financial strength, customer satisfaction, ease-of-use, and more to find the best product liability insurance providers.
Product liability insurance is a key coverage for any company involved in manufacturing, distributing, or selling goods and products. If one of your products fails and causes bodily injury or property damage, you could be sued. Product liability insurance can provide support to protect you from the major legal costs and financial losses that could result from product claims.
Product liability insurance is commonly included as part of general liability coverage. However, the product liability coverage provided by a CGL policy may have lower limits of coverage and feature many exclusions. This coverage is sufficient for companies with minimal product liability exposure, but companies with higher product risks will likely need additional coverage, which can be found through endorsements or standalone product liability policies.
Get a quote on Product Liability Insurance
AdvisorSmith looked at a number of online brokers and insurers to determine the top providers of product liability insurance. We reviewed financial strength ratings from AM Best and Standard & Poors, available features and options, customer satisfaction survey data, and website ease-of-use. We scored providers out of a total of five points and, while we considered a number of providers, we only included those companies that scored 4.0 or higher.
The Best Product Liability Insurance Providers
|1||Chubb||5.0 / 5.0|
|2||Tokio Marine||4.7 / 5.0|
|3||CoverWallet||4.7 / 5.0|
|4||Embroker||4.7 / 5.0|
|5||RLI||4.5 / 5.0|
|6||Great American||4.4 / 5.0|
|7||Axis||4.5 / 5.0|
*Not all insurance companies provide coverage in all states.
More on the Best Product Insurance Providers
5.0 / 5.0
Chubb is a large insurance company with an A++ rating from AM Best and an AA rating from Standard & Poors, indicating a high level of financial strength. Chubb’s product liability insurance programs are customizable and can be tailored to fit many industries. The insurer offers a coordinated claims process, provides consulting services to reduce the likelihood of incidents, and can help manage long-term exposures such as asbestos.
In addition to product liability coverage, Chubb offers preventative consulting services that can help businesses increase safety and reduce the chance of accidents. Auditing services, best practices development, product safety services, studies, and reviews are available to insureds.
4.7 / 5.0
Tokio Marine received an A++ rating from AM Best and an A+ rating from Standard & Poors. Tokio Marine is a large international insurer that offers primary and excess liability coverage and has extensive experience in complex accounts.
Tokio Marine’s product liability policies are designed for product manufacturers and distributors, including machinery and parts, sporting goods, cosmetics, auto parts, furniture, and more. Both CGL and products-only coverage is available on either a claims-made or an occurrence basis. First-dollar coverage and large self-insured retentions are both available and coverage is also available to new ventures.
4.7 / 5.0
CoverWallet is an online broker backed by Aon, an insurer with an A rating from AM Best. The company provides online quotes, assessments to help you understand what types of insurance your business needs, and online claims processes. CoverWallet also provides information about product liability claims and coverage.
CoverWallet uses a customized application and algorithms to help you get the insurance you need without irrelevant questions. The company also provides resources to help businesses understand the risks they may face.
4.7 / 5.0
Embroker is an online broker offering online quotes, online claims, and 24-hour assistance via chat, email, or phone. A personal account manager can help with insurance needs and assist you in getting the right product liability insurance for your business. Embroker does not require you to provide equity, ownership, or financial statements, making it simple to apply for coverage. Policies can be tailored to individual needs, with the option to choose your own deductibles and limits.
Embroker is backed by Munich Re, a financially strong insurer with an A+ rating from AM Best and an AA- rating from Standard & Poors.
4.5 / 5.0
RLI has a rating of A+ from both AM Best and Standard & Poors. RLI is a specialty insurance provider that focuses on property and casualty insurance and surety bonds, including products for underserved markets and niche insurance needs.
RLI’s product liability insurance covers many exposures, including difficult, specialized, or niche risks. The insurer will issue policies within 15 days and offers customized self-insured retention and large deductible programs for product liability policies. Special programs are available for companies dealing with auto parts, cosmetics, and medical equipment.
4.4 / 5.0
Great American received A+ ratings from both AM Best and Standard & Poors, indicating a high level of financial stability. Founded in 1872, Great American is a subsidiary of American Financial Group, a Fortune 500 company.
The insurer provides product liability coverage for many product-focused companies, including manufacturers, distributors, and importers of auto parts, cosmetics, toys, electrical equipment, agricultural equipment, and more. Policies are available on a claims-made or occurrence basis and discontinued products liability coverage is available.
4.1 / 5.0
Axis has an A rating from AM Best and an A+ from Standard & Poors. Axis is a specialty insurer and reinsurer offering a variety of coverages, including primary and excess casualty insurance. The company offers insurance to many industries, such as manufacturers of commercial and consumer products, retailers, hospitality businesses, real estate, and more. Axis offers product liability insurance, but you will likely need to discuss coverage with a broker or agent to find more information.
Product Liability Insurance Pricing
AdvisorSmith found that the average cost of product liability insurance for small businesses was $1,192 per year. This cost survey included small businesses in the manufacturing, retail, and wholesale industries with revenue under $1 million, for general liability coverage of $1 million per occurrence / $2 million per year.
Pricing does, however, vary depending on a number of factors, including:
- Industry. Businesses that operate in high-risk industries, like pharmaceuticals, can expect to pay more in premiums.
- Product. Businesses that develop high-risk products, like insecticides or firearms, can expect to pay more in premiums.
- Annual sales. The more product you sell, the more risk exposure your company faces, resulting in higher premiums.
- Business role in product stream. Depending on where your business sits in the overall stream of commerce, you may be at higher risk for liability. Manufacturers will generally have higher premiums than a company further down the supply chain.
- Claims history. As with most insurance policies, a history of frequent claims will inevitably increase your premiums.
- Coverage limits. The higher your coverage limits are, the more you’ll pay in premiums.
Get a quote on Product Liability Insurance
In order to determine the best product liability insurance providers, AdvisorSmith considered a number of factors that reflect an insurer’s financial strength, customer satisfaction, and ease-of-use. Using our own proprietary scoring algorithm, we weighted the various factors based upon what we believe to be important for small and midsize business owners. These factors included carrier ratings from AM Best and Standard & Poors, customer satisfaction data from several J.D. Power studies, complaint ratings from the National Association of Insurance Commissioners, an evaluation of each insurer’s policies, options, and website features, and more. Our algorithm outputted a score out of five total points. While we considered a number of insurers, we only included in this article those companies that scored 4.0 or higher.
The AdvisorSmith rankings are based upon our editorial team’s quantitative and qualitative analysis, and they are intended to serve only as a guide for our readers. We encourage our readers to conduct their own research when selecting an insurer, shop and compare quotes, and make a decision based on their own unique business needs.
AdvisorSmith is in no way compensated for any of our reviews.