What is product liability insurance?
Product liability insurance protects you against court costs and legal fees associated with bodily injury or property damage claims you incur caused by the products supplied or sold by you through your business as a consequence of a product defect or even the misuse of your product. Misuse of a product is common, and although you may not be at fault, you could still be libel for damages. This coverage is critical and can mean the difference between your company surviving or going out of business.
How much is product liability insurance?
The average cost of product liability insurance is roughly 26 cents per $100 of retail cost. However, this number will vary depending on the risk characteristics of the product. A low risk product would obviously cost less while a high risk product would cost more.