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California Product Liability Insurance | Protect Your Business Today
California product liability insurance protects your business from devastating defective product lawsuits. The risk is real. The average jury award exceeds $3.4 million. Claims are growing 12% annually.
Under California’s strict liability laws, manufacturers, retailers, and distributors all face serious exposure—even if they did everything right.
The Allen Thomas Group has over 20 years of experience helping California businesses get comprehensive, affordable coverage.
Our licensed agents make finding protection simple, fast, and stress-free. You focus on your business. We’ll handle your insurance needs.
What’s the difference between general liability and product liability insurance?
General liability insurance covers accidents at your business location. Someone slips and falls in your lobby. That’s general liability. Someone spills coffee and damages their laptop in your office. That’s general liability. Property damage on your premises gets covered by general liability insurance.
Product liability insurance is different. Completely different. It protects you when products you manufacture, sell, or distribute cause bodily injury or property damage after leaving your premises. After they’re in customers’ hands. After they’re being used in homes, offices, factories, or anywhere else. Under California’s strict liability laws, you need product liability coverage even if you’re a retailer. Even if you don’t make the products you sell.
Commercial general liability (CGL) policies sometimes include product liability coverage, but you need to verify your coverage limits with your agent because many policies exclude it.
Why Product Liability Insurance is Essential for California Businesses
California businesses face unique risks. Why? Strict liability laws. These laws mean injured customers don’t need to prove negligence—they only need to show your product was defective and caused harm. You can be held responsible even if you did everything right, maintained perfect quality control, and followed every safety regulation to the letter.
California operates under Civil Code Section 1714. This establishes the state’s strict liability framework. Combined with California’s consumer protection statutes, it creates significant exposure for businesses throughout the supply chain. Whether you’re manufacturing products, distributing goods, or operating retail locations, California law holds you accountable for defective products that cause bodily injury or property damage. Even if you exercised reasonable care.
Understanding California’s Strict Liability Laws
Three types of defects trigger lawsuits. California law recognizes each one:
- Manufacturing defects – Production errors. Contaminated food. Faulty wiring. These cause bodily injury or property damage.
- Design defects – Inherent flaws in the product itself. Unstable furniture. Unsafe toy designs. These lead to bodily injury claims before a single unit is sold.
- Failure to warn – Missing safety instructions. Inadequate hazard warnings. Insufficient information about potential bodily injury or property damage risks.
The True Cost of Product Liability Claims in California
The financial stakes? Enormous. Nuclear verdicts over $10 million have tripled since 2020. Even more alarming, defective product claims account for more than 40% of all liability losses over the past five years. One lawsuit could wipe out years of profits. It could force you to close your doors. It could destroy everything you’ve built.
Don’t leave your California business exposed. Get comprehensive product liability coverage from licensed experts who understand California’s strict liability environment.
Request your free quote or call (440) 826-3676 today.
Product liability insurance provides essential protection. It covers your legal defense costs—attorney fees, expert witnesses, court expenses, and litigation that can drag on for months or even years. It covers settlements. It covers jury awards for bodily injury and property damage claims. Without it, you’re betting your entire business that nothing will ever go wrong. That’s a bet no smart business owner should make.
Who Needs Product Liability Insurance in California
If your business manufactures, sells, distributes, or imports products in California, you need product liability insurance. Period. Many business owners mistakenly think only manufacturers need coverage. Wrong. Dead wrong. California’s strict liability laws extend to everyone in the supply chain—from the factory floor to the retail store shelf.
High-Risk Industries for Product Liability in California
Businesses that need product liability protection include:
- Food & beverage manufacturers and distributors – You face contamination risks. Listeria. Salmonella. E. coli outbreaks that make national headlines. Allergen concerns with undisclosed ingredients. PFAS “forever chemicals” in food packaging. All of these could lead to bodily injury claims and property damage lawsuits that devastate your business overnight.
- Electronics manufacturers and retailers – Vulnerable to lithium-ion battery defects that cause fires. Overheating issues causing property damage. Electrical hazards leading to bodily injury. One defective batch can trigger thousands of claims.
- Consumer product companies – At risk for design flaws discovered after launch. Safety hazards causing bodily injury to users. Inadequate warnings about property damage risks. The liability follows your product wherever it goes.
- Wholesalers and distributors – Here’s the shocking truth: you’re liable for bodily injury and property damage even when someone else manufactured the product. You didn’t make it. Doesn’t matter. California law says you’re responsible.
- Importers – Pay attention to this. You face even higher premiums because overseas manufacturers typically carry no U.S.-enforceable insurance for bodily injury or property damage claims. When something goes wrong, your insurer pays everything. No way to recover costs from the foreign factory. This increases your rates significantly.
Recent California recalls tell the story. Listeria contamination in food products. PFAS “forever chemicals” in consumer goods. These incidents demonstrate how quickly businesses face serious liability exposure for bodily injury and property damage. Even established companies with strong quality control find themselves facing costly claims.
Special Considerations for Product Importers
Import products from overseas? Listen carefully. Your premiums will be higher. Here’s why: when foreign manufacturers lack U.S.-enforceable insurance, your insurer pays bodily injury and property damage claims in full. There’s no way to recover costs from factories in China, Vietnam, or Mexico. This increases your rates significantly compared to businesses that source domestically or from manufacturers with proper U.S. coverage.
What Does California Product Liability Insurance Cover?
Product liability insurance covers three critical areas.
- First, your legal defense costs—attorney fees, expert witnesses, court expenses, and litigation costs for bodily injury and property damage claims that can easily exceed $100,000 even if you win.
- Second, settlements—the negotiated amounts you pay to make claims go away without the uncertainty and expense of a jury trial.
- Third, court judgments—including multi-million dollar awards for bodily injury and property damage that could otherwise bankrupt your business and force you into liquidation.
Someone claims your product caused bodily injury? You’re protected. Someone claims it caused property damage? You’re covered. This comprehensive coverage applies to all three types of defects recognized under California law—manufacturing errors that happen on the production line, design flaws that exist before the first unit is made, and failure to warn claims about inadequate safety information.
Your coverage includes:
- Legal defense costs – Attorney fees that run $300-$500 per hour. Expert witnesses charging $10,000-$50,000 for testimony. Court expenses. Litigation costs for bodily injury and property damage claims that can stretch for years.
- Settlements and judgments – Including multi-million dollar awards for bodily injury and property damage. These could otherwise bankrupt your business, drain your personal assets if you’re not properly incorporated, and destroy your financial future.
- All three defect categories – Manufacturing errors discovered after products leave your facility. Design flaws that require complete product redesigns. Failure to warn claims that result in bodily injury or property damage because customers didn’t have adequate safety information.
Cost matters. The average is about $99 per month for small businesses. That’s it. That’s less than most businesses spend on coffee for the break room. Compare that to the $3.4 million average jury award in product liability cases involving bodily injury or property damage. Coverage limits typically range from $1 million to $10 million or more. Your business size, product risks, and sales volume determine the right amount of protection against bodily injury and property damage claims.
Your actual California product liability insurance premium depends on several key factors. Insurance carriers evaluate your product types and associated risk levels—food products and medical devices typically carry higher premiums than office supplies or apparel because the potential for bodily injury is greater. Your annual sales volume matters because more sales mean more exposure.
Your claims history for bodily injury and property damage matters tremendously—businesses with clean records pay significantly less than those with a history of lawsuits. Coverage limits you select directly impact your premium, with typical ranges from $1 million to $10 million or more depending on your risk profile. Your industry classification affects pricing. Whether you import products from overseas manufacturers also impacts your rates. Want an accurate quote for your specific business?
Contact our licensed California agents at (440) 826-3676 for a personalized assessment based on your unique risk profile.
Two policy types exist. Understand the difference. It matters.
Claims-made coverage protects you for bodily injury and property damage claims filed during your active policy period, regardless of when the incident occurred. If someone files a claim while your policy is active, you’re covered—even if the injury happened years ago.
Occurrence-based policies work differently. They cover bodily injury and property damage incidents that happen during the policy period, even if claims are filed years later. Long after your policy expires, if the incident occurred while you had coverage, you’re still protected.
Which is better? Depends on your business. Most California businesses benefit from occurrence coverage for products with long lifecycles—furniture, appliances, tools that last for years. Claims-made policies work well for businesses with rapidly changing product lines where last year’s inventory is completely different from this year’s. Your licensed California agent can help you choose the right policy type based on your industry, products, and risk profile for bodily injury and property damage protection.
What Product Liability Insurance Does NOT Cover in California
Understanding exclusions matters. Here’s what standard policies don’t cover:
Product Recall Costs – Standard product liability insurance doesn’t cover recall expenses. You need separate coverage. This can be added to your policy by endorsement. Product recall insurance covers customer notification costs—printing, mailing, advertising to reach everyone who purchased your product. It covers product retrieval expenses—shipping, handling, storage of thousands or millions of recalled units. It covers replacement inventory costs. Without this coverage, a major recall could cost millions out of pocket.
Employee Injuries – If your employees are injured by a product defect during manufacturing or testing, that’s covered by workers compensation insurance. Not product liability coverage for bodily injury. Different insurance. Different purpose.
Professional Services Errors – Mistakes in professional advice require errors and omissions (E&O) insurance. Product liability specifically covers physical products that cause bodily injury or property damage. It doesn’t cover consulting. It doesn’t cover professional services. It doesn’t cover advice that goes wrong.
Cyber Liability Claims – Data breaches require separate coverage. Software failures need separate coverage. Digital security issues aren’t covered by product liability insurance. The digital world needs digital insurance.
Intentional Acts – Coverage doesn’t apply if you knowingly sold defective products that cause bodily injury or property damage. It doesn’t cover deliberately misrepresented product safety. Insurance protects against accidents and unforeseen defects. It doesn’t protect against fraud or intentional harm.
Working with an independent insurance agency changes everything. The Allen Thomas Group helps California businesses identify gaps in coverage. We build complete insurance programs that address every risk for bodily injury and property damage. We make sure you’re protected from every angle.
Ready to secure your protection? Get a personalized quote today. Request your free quote or call (440) 826-3676.
Get California Product Liability Insurance from Licensed Experts
We make it simple. That’s our promise. For over 20 years, The Allen Thomas Group has helped businesses protect themselves against costly product liability claims for bodily injury and property damage. Our licensed California agents understand the state’s unique regulatory environment. They know strict liability laws inside and out. They know how to find coverage that fits your specific industry needs, your budget constraints, and your risk profile.
We don’t believe in one-size-fits-all insurance. Why? Because you’re unique. Your business is different. Your risks are specific to your industry, your products, your distribution channels, and your customer base. Whether you manufacture food products, sell electronics, or distribute consumer goods, we take time to understand your situation. Then we build personalized coverage that addresses your real risks for bodily injury and property damage.
What makes us different:
- Smart & Easy approach – We simplify the complex insurance process. We save you time. We eliminate confusion. Finding protection against bodily injury and property damage claims doesn’t have to be complicated or time-consuming.
- California expertise – Licensed agents who understand strict liability laws. Coverage limits that make sense for California businesses. Recall requirements specific to your industry. We speak the language of California insurance regulation.
- Industry specialists – Experience protecting food & beverage companies from contamination claims. Electronics manufacturers from battery defect lawsuits. Manufacturing businesses from bodily injury and property damage liability that could shut them down. We’ve seen it all. We know how to protect you.
- National reach – Local service you can trust. Coverage limits across 20+ states as your business grows. We’re here in your community, but we can protect you as you expand nationally.
- A-rated carriers – We partner with top-rated insurance carriers. This means financial stability when claims arise. It means comprehensive coverage limits at competitive rates. It means peace of mind knowing your insurer will be there when you need them most.
Product liability coverage can be purchased standalone. Or it can be included in your commercial general liability (CGL) policy. Many businesses bundle it in a Business Owners Policy (BOP). Bundling saves money on bodily injury and property damage protection. It simplifies management. One policy. One renewal date. One agent to call.
Getting started is easy. Simple. Fast. Contact us today for a free, no-obligation quote. Call us at (440) 826-3676—we’ll answer on the first or second ring. Fill out our online form—we’ll respond within hours, not days.
Don’t leave your California business exposed to multi-million dollar liability claims for bodily injury and property damage. Protect everything you’ve built. Get the right product liability insurance. Do it today.
Tailored Insurance Solutions Built For Your California Business
We know how frustrating and complex the process of finding the right product liability insurance can be.
Let us help craft a policy that works for you.
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
Our Commercial Insurance Carrier Partners
That allows us to find the best rates for your business.
Protect Your California Business Today
Don’t leave your California business exposed to devastating product liability lawsuits for bodily injury and property damage. The stakes are too high. The risk is too great. One lawsuit could destroy everything you’ve worked years or decades to build.
With 20+ years of experience and licensed California agents who understand strict liability laws and appropriate coverage limits, The Allen Thomas Group makes getting the right coverage simple. Affordable. Fast. We’ve helped thousands of California businesses protect themselves from bodily injury and property damage claims. We know what works. We know how to find you the best coverage at the best price.
Call us today at (440) 826-3676 for your free quote. Contact us online if you prefer email or forms. Speak with an expert about protecting your business from bodily injury and property damage claims that could bankrupt you. Protect everything you’ve worked so hard to build. Do it today. Do it now. Tomorrow might be too late.
Get More Insights On Making The Right Insurance Decision For Your Company
How much does product liability insurance cost in California?
Product liability insurance costs an average of $99 per month for small businesses in California. Your actual premium? It depends. Product type matters—food and electronics cost more than clothing and office supplies. Annual sales volume matters—higher revenue means more exposure. Industry risk level matters tremendously. Claims history for bodily injury and property damage determines your rates more than almost any other factor. Food manufacturers and electronics companies typically pay more than lower-risk retailers. Coverage limits you select impact your cost directly—$1 million in coverage costs less than $10 million. Want to know your exact cost? Contact us at (440) 826-3676 for a free, personalized quote based on your specific bodily injury and property damage risks.
Do California retailers need product liability insurance if they don't manufacture products?
Yes. Absolutely yes. Without question. California operates under strict liability laws—some of the toughest in the nation. This means everyone in the supply chain can be held responsible for defective products causing bodily injury or property damage. Manufacturers get sued. Obviously. But also distributors, wholesalers, and retailers. You can be sued for bodily injury and property damage even if you didn’t make the product, never touched the manufacturing process, and had no way of knowing about the defect. Even if you did nothing wrong. Recent California cases prove it beyond any doubt—retailers face lawsuits alongside manufacturers for product defects causing bodily injury or property damage. Coverage limits of $1 million to $10 million are standard for California retailers, depending on sales volume and product types.
Does product liability insurance cover product recalls?
No. Standard product liability insurance does not cover recall costs. Here’s what it does cover: liability claims for bodily injury and property damage caused by defective products. Legal defense costs when customers sue you. Settlements when you negotiate with injured parties. Product recall insurance is separate. Completely separate. Different coverage. Different purpose.
Recall insurance covers expenses like notifying customers—advertising, direct mail, social media campaigns to reach everyone who bought your product. It covers retrieving products—shipping costs, handling fees, warehouse storage for recalled inventory. It covers replacing items—manufacturing costs, expedited shipping, customer service expenses. Need both types of coverage? Most businesses do. We can help you determine the right coverage limits and coverage combination for your specific situation. Call (440) 826-3676 to discuss your specific needs for bodily injury, property damage, and recall protection.
How do I get started with product liability insurance?
Getting coverage is simple. Three easy options.
First, contact our licensed California agents for a free quote at (440) 826-3676. We’ll answer your questions over the phone. We’ll gather information about your business, your products, your concerns. We’ll provide guidance on appropriate coverage limits for your risk profile.
Second, fill out our online form. It takes five minutes. We’ll respond within hours with preliminary information and follow-up questions to provide an accurate quote.
Third, send us an email. Describe your business. List your products. Tell us about your sales volume and any concerns about bodily injury and property damage risks. We’ll respond quickly with next steps.
We’ll ask about your business operations. Your products and how they’re used. Your sales volume and distribution channels. Your concerns about bodily injury and property damage risks and how they keep you up at night. Then we search our carrier network to find you comprehensive coverage limits at competitive rates. Most quotes? Ready within 24-48 hours for bodily injury and property damage protection. Some same day if your situation is straightforward.
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