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SESK: Stuff Everyone Should Know · sesk.info/biz-product-liability-insurance

Which insurance covers losses when a product you make or sell is defective and hurts someone?

Product liability insurance.

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  1. Professional liability insurance
  2. Commercial property insurance
  3. Product liability insurance ✔

Why: The SBA says product liability is for businesses that manufacture, wholesale, distribute or retail a product. It covers losses when a defective product causes injury. Even a small online shop selling goods can face these claims.

Huh, didn't know that: The SBA includes manufacturers, wholesalers, distributors and retailers among businesses that may need this coverage.

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References

Answer: Product liability insurance. The SBA says product liability is for businesses that manufacture, wholesale, distribute or retail a product. It covers losses when a defective product causes injury. Even a small online shop selling goods can face these claims.

  1. SBA: Get business insurance www.sba.gov/business-guide/launch-your-business/get-business-insurance
    This coverage protects against financial loss as a result of a defective product that causes injury or bodily harm.
    Checked 2026-10-11.

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