Protection when a product you make or sell causes harm
Product liability insurance may pay defense costs and covered damages when a product you make, import, distribute, or sell is claimed to have caused injury or property damage. In California, strict liability means the claimant doesn’t have to prove carelessness, only a defect that caused harm.
If you manufacture, distribute, or sell products, a claim that one caused injury or property damage can be severe — and retailers and distributors usually require proof you’re covered before they’ll carry your goods. Product liability responds. Insurance City writes it for Central Valley producers and sellers.
What product liability covers
- Bodily injury or property damage caused by your product.
- Legal defense costs for product-related claims.
- Settlements and judgments up to your limits.
- Frequently required by retailers, distributors, and big-box buyers.
It’s often included within general liability as products & completed operations — we’ll confirm your limits are high enough for what you sell and who you sell to.
Why businesses work with us
We’re independent, so we shop your product line across major commercial carriers instead of one company’s box — and there are no broker fees on standard policies at our Stockton and San Jose offices. We make sure the limits meet your buyers’ contract requirements and explain the exclusions before you sign. Bilingual (English / Español) and local to Stockton.
Get a product liability quote
Tell us what you make or sell and who buys it, and we’ll put together comparative quotes across carriers. Call (209) 670-1556 or request a quote below.
How does product liability work in California?
California applies strict liability to defective products. An injured person doesn't have to prove you were careless. They have to show the product was defective and that the defect caused the harm. The California Supreme Court set that rule for manufacturers in Greenman v. Yuba Power Products (1963) and extended it to retailers in Vandermark v. Ford Motor Co. (1964). Product liability insurance may pay your defense and covered damages when that kind of claim is made.
There are three kinds of defect claims:
- Manufacturing defect: one unit came out differently from the design, such as a bad weld or a contaminated batch.
- Design defect: the whole line is unsafe. Under Barker v. Lull Engineering (1978), California courts can use a consumer-expectations test or a risk-benefit test.
- Failure to warn: missing or inadequate instructions or warnings. California's Proposition 65 (Health & Safety Code §25249.6) separately requires clear and reasonable warnings for listed chemicals.
Who in the supply chain can be named in a product claim?
Everyone who put the product into the stream of commerce can be named: the manufacturer, the component maker, the importer, the distributor, and the retailer or online seller. Importers get extra attention because, when the foreign manufacturer is out of reach, the claim tends to land on the first U.S. business in the chain. That's why buyers such as retailers, distributors, and marketplaces usually require a certificate of insurance and a vendor's endorsement naming them as additional insureds before they'll carry your goods.
| Products-completed operations inside a GL policy | Stand-alone product liability | |
|---|---|---|
| Typical fit | Retailers and light manufacturers with low-hazard goods | Manufacturers, importers, private-label brands, higher-hazard products |
| Limits | Shares the GL products-completed operations aggregate | Its own limits, sized to buyer contracts |
| Buyer requirements | May meet small-store requirements | Often needed for big-box and distributor vendor agreements |
| Common exclusions | Product recall, damage to your own product, contractual warranties | Same. Recall is usually a separate policy |
How many product-related injuries happen each year?
The U.S. Consumer Product Safety Commission's 2024 Annual Report of Deaths and Injuries estimates 11.5 medically treated consumer-product-related injuries per 100 people in 2024. It also estimates about 59,900 deaths in 2023 that were related to consumer products (CPSC notes that "related to" does not always mean "caused by"). Only a small share becomes claims, but every one of those claims starts with the same question: who made, imported, or sold it?
How long does someone have to file a product injury claim in California?
Generally, two years from the injury for personal-injury claims (Code of Civil Procedure §335.1) and three years for property damage (CCP §338). Claims can surface long after the sale, so ask whether a policy is written on an occurrence or a claims-made basis. With claims-made coverage, a gap in coverage can leave older sales uninsured.
Before you sign a retailer or distributor agreement: 5 steps
- Pull the insurance section of the vendor agreement: required limits, additional-insured wording, waiver of subrogation, and whether they require primary and non-contributory coverage.
- List your products, SKUs, where each is made, and your annual sales by product line.
- Gather your labels, instructions, and warnings, including any Prop 65 warnings.
- A licensed agent shops the risk and reviews the exclusions with you before you bind.
- Issue the certificate of insurance and the vendor's endorsement to the buyer, then calendar the renewal.
What affects the price of product liability insurance?
We don't publish price ranges. Pricing is based on factors: the product type and hazard class, gross sales or revenue, where it's sold (California, nationwide, export), the share you import, years in business, claims history, quality control and labeling, and the limits and deductible you choose.
Related: general liability · en español
Insurance City Agency, LLC dba Via Rapida Insurance Services · CA Lic #6003045 · 956 W Robinhood Dr, Stockton · 25 N 14th St Ste 125, San Jose · (209) 670-1556. Reviewed by Santo Militello, CA License #1737723. Updated September 30, 2026. This is general information, not legal advice. Coverage depends on the policy wording, and a licensed agent can review a specific policy with you.
Frequently Asked Questions
Does California require product liability insurance by law?
For most product sellers, no state statute requires it. In practice, retailers, distributors, and online marketplaces require it by contract, usually with a certificate of insurance and a vendor's endorsement naming them as additional insureds.
Can a retailer be sued for a product it didn't make?
Yes. California extended strict product liability to retailers in Vandermark v. Ford Motor Co. (1964). Retailers, distributors, and importers can be named along with the manufacturer.
How long does someone have to sue over a defective product in California?
Generally two years from the injury for personal injury (Code of Civil Procedure §335.1) and three years for property damage (CCP §338). Timing rules have exceptions. Ask an attorney about a specific claim.
What does product liability insurance cover?
Bodily injury or property damage caused by a product you make, distribute, or sell, plus legal defense costs and settlements up to your limits.
Who needs product liability insurance?
Manufacturers, distributors, and retailers — and it is frequently required by retailers and big-box buyers before they will carry your product.
Is product liability part of general liability?
It is often included as products and completed operations; we confirm your limits are high enough for what you sell and to whom.
Insurance City offers comparative quotes on Product Liability Insurance from multiple insurance carriers so you can compare options and pick the right fit.
Request a quote to compare your options.
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956 W Robinhood Dr, Stockton · Mon–Fri 10am–6pm · Walk-ins welcome · Se habla español · ITIN accepted. Insurance City Agency, LLC · CA License #6003045. Reviewed by Santo Militello, California-licensed agent and owner (CA Lic. #1737723). Our licensed team brings more than 70 years of combined insurance experience.
