Products Liability Insurance Insurance: Average Premiums & Pricing Factors
Quick Answer
How much does Products Liability Insurance cost? Average premiums by business size, industry, and state — plus the key factors that drive your rate up or down.
Comprehensive FAQ, cost guide, and claims examples for products liability insurance — coverage for manufacturers and sellers.
What You Need to Know
Products liability insurance covers claims of injury or damage caused by defective products manufactured, distributed, or sold by a business.
Products Liability Insurance Cost by Business Size
| Business Size | Annual Revenue | Typical Premium | Notes |
|---|---|---|---|
| Small Manufacturer | Under $1M | $2,000–$5,000/yr | Basic products liability. |
| Large Manufacturer | $10M+ | $15,000–$100,000/yr | High-limit coverage with international exposure. |
What Determines Your Premium?
- Product Risk (High impact) — Toys, food, and medical devices have higher risk than clothing or furniture.
- Sales Volume (High impact) — Higher sales volume increases exposure to potential claims.