What is Primary/Excess Products Liability?
Primary and excess products liability insurance provides coverage for businesses that manufacture, distribute, or sell products. This type of insurance helps protect against claims of bodily injury or property damage caused by a product once it has left your control. "Primary" coverage responds first to a claim, while "excess" coverage provides additional protection once the limits of the primary policy are exhausted.
Who Needs It
Any business involved in the production, sale, or distribution of physical goods should consider this coverage. This includes:
- Manufacturers
- Wholesalers and distributors
- Retailers
- Importers and exporters
Even if you aren’t the original manufacturer, you can be held liable if your business is part of the supply chain.
What It Typically Covers
Primary/excess products liability insurance usually covers:
- Bodily injury caused by a defective or unsafe product
- Property damage resulting from product failure
- Legal defense costs related to covered claims
- Judgments or settlements up to your policy limits
This coverage applies after the product has been sold and is in the hands of the consumer.
Common Exclusions and Limitations
While this insurance protects against many risks, there are common exclusions that may apply:
- Product recalls
- Intentional acts or fraud
- Contractual liability not covered by the policy
- Wear and tear or expected product failure
Always review your specific policy to understand what's covered and what’s not.
Factors That Influence Cost
The cost of primary/excess products liability insurance depends on several factors, including:
- Type of products you sell or manufacture
- Annual revenue and sales volume
- Claims history
- Geographic areas where products are sold
- Coverage limits and deductibles
Proof of Insurance and Compliance
Many distributors, retailers, and business partners require proof of insurance before doing business with you. Certificates of insurance (COIs) are commonly used to show that you have active products liability coverage. Requirements can vary by state and industry, so it’s important to work with an experienced provider who understands your needs.
How to Get a Quote
Getting covered starts with a quick quote. Our team can help you find the right primary or excess products liability policy for your business needs. Get a quote today.
Frequently Asked Questions
What is the difference between primary and excess liability coverage?
Primary liability coverage responds first to a claim. Excess liability provides additional protection once the primary limits are used up.
Is products liability included in general liability insurance?
Some general liability policies include basic products liability, but limits may be low. Standalone or excess coverage offers broader protection.
Do retailers need products liability insurance?
Yes. Retailers can be held liable for defective products they sell, even if they didn’t manufacture them.
What types of claims does products liability insurance cover?
It typically covers claims of injury or property damage caused by a product defect, design flaw, or labeling issue.
Can I be sued even if I didn’t make the product?
Yes. If your business is part of the distribution chain, you can be named in a lawsuit involving a defective product.
Still have questions? Talk to a local insurance expert.