Using quotations for commercial general liability insurance that include product liability coverage for small firms with $1 million in sales and ten workers, AdvisorSmith calculated the average cost of product liability insurance. Over sixty different types of businesses in the manufacturing, wholesale, and retail sectors were included in our study. We compared their commercial insurance quotes with those of admitted insurers nationwide. One of the most common types of insurance protection is described as $1 million per incident and $2 million in total.
Insurance Premiums for Product Liability Claims, on Average, by Sector
The average premium for factories was $1,146 per year, with prices ranging from $736 to $1,854. Since excess and surplus insurance companies typically cover manufacturers of hazardous or high-risk products, they were not included in this study. Producers of items for children, food producers, technological and electrical devices, medical devices, and makers with significant chemical exposures were omitted.
The average annual premium for wholesalers' general liability insurance covers product liability, was $1,159. Researchers found that wholesalers' premiums might vary from $751 to $2,431.
General liability insurance for shops costs an average of $1,271 annually. Since general liability also covers the exposure of retail businesses to claims from walk-in customers, including slip-and-fall claims, premiums for retail businesses were higher than for wholesalers or manufacturers. Retail insurance rates varied from $3,000 to $4,494 annually.
In the United States, a small firm's annual premium for product liability insurance is $1,192, or around $99. Our research revealed that enterprises' risk exposures and premiums might vary widely, from as little as $300 per year to as much as $4,494 per year.
