Business Insurance
Product Liability Insurance in Arizona
What is product liability?
Product liability insurance responds when a product you manufacture, import, distribute, or sell allegedly injures someone or damages property. It typically lives inside general liability as products and completed operations coverage, but products businesses need it sized and written for what they actually sell.
Retail platforms and distributors increasingly require proof of it before they will carry your product.
Who needs it
Product liability matters for:
- Manufacturers and makers, from food products to hard goods
- Importers, who are often treated legally as the manufacturer of foreign-made goods
- Amazon, Walmart Marketplace, and other platform sellers, since platforms commonly require $1 million in coverage
- Private label brands
- Distributors and wholesalers in the supply chain
What it commonly covers
Products coverage commonly addresses:
- Bodily injury caused by a product defect or inadequate warning
- Property damage caused by your product
- Legal defense, often the biggest cost even for claims that go nowhere
- Completed operations claims arising after work or products leave your hands
What it may not cover
Typical exclusions:
- Product recall costs, which need separate recall coverage
- Repairing or replacing the defective product itself
- Known defects you continued selling
- Certain product categories, like supplements or children's products, may be excluded or need specialty markets
Coverage varies by policy. The details above are general; your policy's terms control.
When it's commonly required
- Amazon requires coverage once sales pass its thresholds
- Big-box retail and distribution agreements require it, often with vendor endorsements
- Co-packing and licensing deals commonly require it
How BrokerPro approaches it
Product risk lives in the details: what the product is, who uses it, where it is made, what testing exists, and what your labels say. Carriers price a supplement, a children's toy, and a leather wallet completely differently. We figure out which markets actually want your product category before we run quotes.
If you are an importer, plan on carriers treating you as the manufacturer. Documentation of your supplier and quality control helps your submission.
Common questions
I sell on Amazon. What insurance do they require?
Amazon's standard requirement is $1 million in commercial general liability covering products, naming Amazon and its affiliates as additional insureds, triggered once your sales pass their monthly threshold. We set these policies up routinely and can issue the certificate in the format Amazon expects.
I import products made overseas. Why does that matter for insurance?
If an overseas manufacturer cannot be effectively sued in U.S. courts, the claim lands on the importer, you. Carriers know this and underwrite importers accordingly. Good supplier documentation and testing records make you more insurable.
Are some products harder to insure?
Yes. Supplements, CBD, children's products, anything ingestible or flammable, and certain electronics draw more scrutiny and fewer carrier options. Harder does not mean impossible. We work specialty markets for product categories standard carriers decline.
Ready to look at product liability options?
Send us the basics and we'll come back with practical choices and plain-English explanations. No runaround.