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  • Writer's pictureAmanda Bird

5 Industries That Require Product Liability Insurance

Insurance is essential for businesses of all shapes and sizes because it protects you financially if something goes wrong. If you sell items to clients, you must have product liability insurance to protect yourself from claims for associated losses. So, how can you know if this type of insurance is right for you? We've witnessed firsthand the need to ensure that your company has product liability coverage in place when needed. Contact us to explore your alternatives if you require product liability insurance.

Meanwhile, let's look at product liability insurance and how it pertains to your industry.

What is product liability insurance?

Product liability insurance protects you in the event that a product you've designed, produced or distributed causes significant damage, injury or death to a third party. Examples of possible claims that this type of insurance could cover include:

  • Products that have not been labelled correctly which has led to harm for the user.

  • Products have been wrongly advertised or mislabelled, which has resulted in a person being harmed.

  • Products have been used incorrectly, which has resulted in significant harm to a third party.

As well as protecting your assets, this form of cover also protects your business from being exposed to large amounts of legal fees.

What industries require product liability insurance?

1. Manufacturing Industry

One of the most common industries that need this sort of protection is the manufacturing business. You will be responsible for damages if you create faulty things that cause damage or injury. For example, if you create faulty furniture and cause damage, you would be covered by product liability insurance.

2. Healthcare Industry

Doctors and other medical professionals are heavily responsible for the outcomes of any product they use in their job. There are a vast number of medical devices used in this area of work, which expose doctors and other medical professionals to the risk of damages.

3. Retail Industry

It is essential for retailers to take out product liability insurance for their products. If you own a retail outlet that sells products that could cause harm to people, then you will be responsible for damages. For example, if you own a shop that sells children's toys that cause damage to a child, then you will be covered by product liability insurance.

4. Food Industry

There are many different food industries that need product liability insurance. For example, if you own a cafe that serves food that is mislabelled, you will be owed damages in court. Likewise, if you own a restaurant, you will need this type of cover.

5. IT Industry

Product liability insurance is required for those working in the technology industry, as the devices you create could cause harm. As an example, if you create faulty hardware or software, you will be expected to cover any damages.


When you see how many industries require product liability insurance, you can see why this type of insurance is essential for any business. Whether you are aware of the legal implications of what you do or not, it can be essential to take out this type of cover as a form of legal insurance. For further information about how product liability insurance works, you can contact us for more information.

Find the best insurance policies for your small business assets with the help of New Wave Insurance! Our team of Gold Coast insurance specialists does the heavy lifting for you when it comes to finding the right insurance, negotiating on your behalf to find the best value policies. Book a free 15-minute insurance consultation with us now!

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