How Much Product Liability Insurance?

Having product liability insurance is not just smart; it is critical when protecting your business from unforeseen risks. But how much coverage is enough? The answer depends on several key factors, from industry type and product complexity to the size of your operations.

At Azure Risk, we guide our clients to make confident data-backed decisions for more innovative coverage planning.

Why Coverage Levels Matter

A 2022 report by the Insurance Information Institute revealed that U.S. product liability jury awards averaged $7 million, some even exceeding eight figures, depending on the severity of injury or business impact.

Showing that a single product-related lawsuit could severely impact your balance sheet, disrupt operations, or harm your reputation if you are underinsured.

Factors That Influence Your Coverage Needs

No two businesses are alike. Here is what typically affects the amount of product liability coverage you should carry:

1. Business Size and Revenue

Larger operations often require higher limits due to their scale and visibility.

2. Product Risk Profile

Electronics, medical devices, and food or beverage products are typically more exposed than textiles or stationery.

3. Distribution Scope

International or e-commerce reach increases legal exposure across multiple jurisdictions.

4. Claim History

Businesses with a history of incidents may be advised to carry higher coverage to reflect risk trends.

5. Industry Requirements

Some clients, retailers, or contracts may demand specific minimum coverage amounts (e.g., $1M–$10M).

For many small- to medium-sized enterprises, common product liability insurance limits range between $1 million and $5 million, though high-risk industries may require higher limits or umbrella policies.

Your Insurance Expert

We deliver tailored advice to fit our clients’ requirements and ensure they understand the options available to them. Contact us for a free personalized assessment of your policy needs.

Why Choose Us?

We at Azure Risk combine deep industry expertise with a commitment to understanding your business. Partner with us to protect your operations and reputation with a policy that evolves alongside your company’s ambitions.

Get in touch today to learn how our Freight Forwarders Liability Insurance can safeguard your business, your cargo, and your peace of mind.

Let Azure Risk Help You Decide

Determining the right limit is not just about ticking boxes. It is about understanding how risk flows through your product lifecycle and designing a strategy that protects long-term value.

So, build smarter, safer businesses with Azure Risk!

At Azure Risk, we combine deep industry insight with hands-on advice to help you choose the right product liability insurance limits. Let’s assess your exposure and secure the protection your business needs NOW!

Contact Azure Risk today for a customised quote and product liability risk assessment.