Michigan Product Liability Insurance

General liability insurance covers injuries and property damage from your business operations. A customer slips in your store. That’s general liability. Product liability insurance specifically covers harm caused by products you make, sell, or distribute—including defects that appear after the sale. Big difference.

Many Michigan businesses bundle both coverages in a commercial general liability policy for comprehensive protection. This approach often saves money compared to purchasing standalone policies. Allen Thomas Group helps you determine whether you need standalone Michigan product liability insurance or if bundling with general liability insurance makes more sense for your situation. We compare options from multiple insurance providers to find the best value.

Yes. Absolutely. E-commerce businesses need product liability insurance. With 16.3% of retail sales now happening online, digital retailers face the same liability exposure as physical stores. Same risks. Same lawsuits. Same financial devastation.

If a product you sell online injures someone or damages their property, you can be held legally responsible regardless of your sales channel. Michigan’s strict liability standard applies equally to online and offline sales. The claims process works the same whether customers buy in-store or through your website. Allen Thomas Group specializes in helping e-commerce businesses get the right coverage for their digital operations. Our risk assessment process evaluates your unique online retail exposure.

Product liability insurance covers three main defect categories. First: design defects—inherent flaws in the product blueprint that make it unsafe even when manufactured correctly. Second: manufacturing defects—errors during production that make the product dangerous. Third: failure to warn—inadequate instructions or safety warnings about proper use.

Your policy also covers legal defense costs, settlements, and judgments regardless of which defect type is claimed. This comprehensive protection ensures you’re covered whether the problem originated in design, production, or marketing. Understanding policy exclusions matters too—most policies exclude intentional acts, known defects, and product recall expenses. Complete protection requires the right coverage limits based on your specific products and sales volume.

Most Michigan businesses can get product liability insurance within a few days to two weeks. The timeline depends on your business complexity and the information needed for insurance underwriting. Allen Thomas Group makes the process simple. We gather your business details. We conduct risk assessment of your operations. We present you with options from multiple carriers.

Many straightforward businesses receive quotes within 24-48 hours and can bind coverage immediately after accepting a quote. Fast. Simple. Easy. Complex manufacturing operations may require additional underwriting time for thorough risk management evaluation. We handle the paperwork so you can focus on running your business. Our insurance brokers coordinate with carriers, answer underwriting questions, and expedite the approval process.

Yes. Michigan law allows injured parties to sue everyone in the distribution chain—manufacturers, wholesalers, distributors, and retailers. You can face product liability claims even if you only sold or distributed a product manufactured by someone else. This makes Michigan product liability insurance essential for retailers, e-commerce businesses, and distribution companies, not just manufacturers.

Under Michigan’s strict liability standard, selling a defective product exposes you to the same legal risks as the manufacturer. A retailer can face multimillion-dollar lawsuits. A distributor can too. A wholesaler faces identical exposure. Insurance premiums for non-manufacturers may differ from manufacturer rates, but the need for coverage remains critical. Working with experienced insurance brokers helps you understand your specific exposure and select appropriate coverage limits for your role in the supply chain.