The Overlooked Coverages in Product Liability Insurance

Strive Insurance | Protecting Texas Manufacturers and Distributors
When most companies think of product liability insurance, they assume they're protected from lawsuits if their product causes harm. But there’s much more to it than just basic liability coverage, and overlooking key add-ons or exclusions can be costly.
At Strive Insurance, we’ve helped many Texas-based manufacturers, importers, and distributors uncover gaps in their product liability policies that could have exposed them to major financial losses.
Let’s break down the often-overlooked coverages you should review.

​1. Coverage for Product Recall Costs
Many business owners assume their product liability policy includes recall expenses. It usually doesn’t.
Product Recall Insurance can help cover:

• Notifying customers
• Shipping and disposal costs
• Product replacement
• Public relations to protect your brand

In industries like food, supplements, electronics, or toys, recall coverage is essential. One mistake can trigger a recall that costs more than the lawsuit itself.

2. Contractual Liability Coverage
Do you sign agreements with distributors, wholesalers, or retailers?
If your contract includes hold harmless or indemnification clauses, you may be accepting legal responsibility for things your policy doesn’t cover. Contractual liability coverage can help protect you when your contracts create obligations beyond your normal operations.

3. Vendors Endorsements
If your product is sold by big-box stores or through third-party vendors, they may require you to list them as additional insureds. This isn't automatic in most policies.

A Vendors Endorsement helps protect the retailer from lawsuits involving your product and keeps you compliant with contract requirements. Without it, you might lose distribution deals—or worse, get sued without coverage.

4. Foreign Liability
If your products are sold internationally, your standard U.S.-based liability policy likely won’t follow you overseas.
Foreign Product Liability Coverage extends your protection into countries where you're selling or distributing goods. Without it, you could be on your own in a foreign legal system.

5. Claims Arising from Incorrect Instructions or Labels
Many claims stem not from defective products—but from improper labeling or missing instructions. Some policies exclude or limit coverage for these types of errors.
Make sure your policy includes coverage for:

• Inadequate warnings
• Faulty or missing instructions
• Mislabeling (especially in food, chemical, or medical products)

Why It Matters for Texas Businesses
Texas is home to thousands of growing manufacturers and importers. Whether you're producing supplements in Austin, exporting electronics from Dallas, or distributing products through Amazon from Houston, your risk profile may be far more complex than you realize.
And when a lawsuit hits, the policy you thought would protect you might not go far enough.

How Strive Insurance Helps
At Strive Insurance, we specialize in helping product-based businesses identify gaps, understand endorsements, and build coverage that fits their real-world risks.
We know the fine print—so you can focus on production, not protection.