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Oracle RMS Insurance

Product Liability Insurance

Commercial Insurance — Oracle RMS Insurance

Product Liability Insurance

Protect your business from claims arising from products you manufacture, distribute, import, or sell.

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Product liability insurance covers claims made against your business for bodily injury or property damage caused by a product you manufactured, distributed, imported, or sold. Even if you did not manufacture the product, you can be held liable as a distributor or retailer in the supply chain. Product liability is typically included within a commercial general liability policy under the "products and completed operations" coverage, but standalone or enhanced limits are available for businesses with significant product exposure.

Who needs this coverage?

Manufacturers, importers, distributors, wholesalers, retailers, and any business that puts a product into the stream of commerce needs product liability coverage. This includes food and beverage producers, consumer goods manufacturers, industrial equipment suppliers, and e-commerce businesses selling physical products.

Key coverages

  • Bodily injury caused by your products
  • Property damage caused by your products
  • Products and completed operations liability
  • Legal defence costs
  • Recall-related liability (limited)
  • Imported products liability
  • Distributor and retailer liability
  • Worldwide products liability
  • Settlements and judgments

Frequently Asked Questions

Is product liability included in my CGL policy?
Yes — standard CGL policies include products and completed operations liability, which covers claims arising from your products after they leave your control. However, businesses with significant product exposure may need higher limits or a standalone product liability policy.
Can I be held liable for a product I didn't manufacture?
Yes. As a distributor, importer, or retailer, you can be named in a product liability lawsuit even if you did not manufacture the product. Canadian courts have held all parties in the supply chain jointly and severally liable in some cases.
Does product liability cover product recalls?
Standard product liability policies cover claims for injury or damage caused by your products but do not cover the cost of a product recall itself. Product recall insurance is a separate coverage that covers the costs of withdrawing a defective product from the market.
What is completed operations liability?
Completed operations liability covers claims arising from work you have completed — for example, a contractor who installs a faulty component that later causes damage. It is the service-business equivalent of product liability and is typically included in the same CGL coverage section.
How are product liability premiums calculated?
Premiums are based on your annual revenue, the type of products you sell, the markets you sell into (domestic vs. export), your claims history, and the inherent risk of your product category. Higher-risk products such as food, medical devices, and children's products attract higher premiums.

Ready to review your coverage?

Speak with a licensed broker at Oracle RMS — by phone, video, or in person. We serve businesses across Canada.*

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* Commercial insurance services available across Canada, excluding Quebec.