Product Liability Insurance covers a range of entities involved in the production, distribution, and sale of products. Here’s a breakdown of who is typically covered under a product liability policy:

1. Manufacturers

• Description: Any company or individual involved in the creation or assembly of a product. This could include factories, subcontractors, or private-label manufacturers.
• Coverage: Manufacturers are held responsible for any defects or issues that arise from the production process, including design and manufacturing flaws. Even if they outsource certain aspects, they can still be liable for the finished product.

2. Wholesalers and Distributors

• Description: Businesses or individuals involved in the transportation and storage of products before they reach retailers.
• Coverage: Wholesalers and distributors can be held liable if the products they handle cause injury or damage, even if they didn’t produce the goods themselves. They are part of the supply chain and, as such, share responsibility.

3. Retailers

• Description: Businesses or individuals that sell products directly to consumers.
• Coverage: Retailers can also be held liable for product defects, especially if they sell the product under their own brand or if the manufacturer is no longer available to be held accountable. If the product injures a consumer or causes property damage, retailers may face lawsuits.

4. Importers

• Description: Companies or individuals that import products from international manufacturers for domestic sale.
• Coverage: Importers can be held liable for defects in the products they bring into the country, as they are considered part of the distribution chain. This is especially important when dealing with foreign manufacturers, where legal action may be more complex.

5. Private Labelers

• Description: Businesses that rebrand products made by another manufacturer and sell them under their own label.
• Coverage: If you sell products under your own name or brand, even though they were made by someone else, you can be held responsible for any defects or damages the products cause. Private labelers take on the legal responsibility of the product’s safety.

What’s Not Covered:

Product liability insurance typically does not cover entities or individuals not directly involved in the sale or distribution of the product. Additionally, the policy may exclude coverage for:

• Intentional acts: Such as knowingly selling defective or dangerous products.
• Warranty breaches: Claims related to unmet product guarantees or performance promises.
• Certain product categories: Depending on the policy, specific product types, like firearms or medical devices, may not be covered without specialized coverage.

This type of insurance provides protection to anyone involved in the supply chain, ensuring that businesses at every stage—from production to sale—are safeguarded against potential product-related lawsuits.