Usually Yes, Through Product Liability, but the Details Decide It
If a product you manufactured is alleged to have injured someone or damaged their property, the coverage that typically responds is product liability. Whether you’re actually protected depends on your limits, your exclusions, and how the policy is structured.
What Usually Happens in This Scenario
- A claim or lawsuit is filed against your business
- Your product liability coverage is triggered (assuming the product and claim type aren’t excluded)
- The policy can respond to legal defense costs and damages, up to your limit
- If the claim exceeds that limit, your umbrella coverage may extend it
Where Coverage Falls Short
- Limits too low to cover a serious injury claim and defense costs
- Exclusions for your specific product, material, or process
- The claim type isn’t what the policy was built to cover
- No umbrella above your product liability, leaving a large claim partly uncovered
The Cost Most Owners Underestimate
Even a claim you ultimately win can be expensive to defend. Legal costs alone can be significant, which is why limits and defense coverage matter as much as whether the claim has merit.
For a full overview of what manufacturers need, see what insurance does a manufacturer need in Utah.
Would Your Policy Actually Respond?
The time to find out how your product liability would handle a real claim is before one lands, not during.