Three Common Misunderstandings About Product Liability Insurance

For Texas businesses, managing risk means more than just locking the doors at night or maintaining safe operations. One of the most overlooked exposures is product liability, the financial risk that arises when a product you make, sell, or distribute causes injury or damage.
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At Strive Insurance Group, we help businesses across Texas understand how to protect themselves with the right commercial insurance solutions. Here are three common misconceptions about product liability insurance that every business owner should be aware of.

1. “Products Liability Only Applies to Manufacturers”
This is one of the biggest misconceptions we see. Product liability applies not only to manufacturers but also to retailers, distributors, installers, and service providers.

If your business plays any role in getting a product into the hands of a customer, you may be part of the liability chain. That means even if you didn’t design or manufacture the item, you could still be pulled into a lawsuit if the product fails, causes harm, or leads to property damage.

Having the proper product liability coverage ensures your business is protected from claims that may not even be your fault.

2. “Our General Liability Policy Covers That”
Another common misunderstanding is that a general liability insurance policy automatically provides complete protection for defective products. While general liability insurance offers broad coverage, it often has exclusions or limitations once the product leaves your control.

Products liability insurance covers explicitly claims that arise from the use or consumption of a product after it’s been sold or distributed. Without it, your business could face significant out-of-pocket costs for legal defense, settlements, or judgments.

A tailored commercial insurance policy from Strive Insurance Group ensures that both your general and product liability coverages work together seamlessly.
 
3. “We’ve Never Had a Claim, So We Don’t Need It”
Experience and safety records matter but they don’t eliminate risk. Even one incident involving a defective part, improper labeling, or an injury caused by product misuse can trigger a costly lawsuit.

Legal fees alone can threaten a small or mid-sized business. Product liability insurance provides a financial safeguard so you can continue operating confidently, even when the unexpected happens. The right coverage allows your company to recover faster and maintain customer trust.

Strive Insurance Group: Protecting Texas Businesses
At Strive Insurance Group, we specialize in providing commercial insurance solutions for businesses in Texas. From product liability coverage to property, general liability, and workers' compensation, our goal is to help you identify risks and build the right protection plan for your unique operation.

If you’re unsure whether your business has the right level of protection, we can help. Our experienced team will review your policies, explain your coverage, and identify any gaps that could expose you to unnecessary risk.

Take the Next Step
Don’t wait for a claim to find out what your insurance doesn’t cover.
Contact Strive Insurance Group today for a personalized insurance review and discover how we can help protect your business from product-related claims.

Strive Insurance Group – Commercial Insurance Solutions for Texas Businesses.
Protect your products. Protect your reputation. Protect your future.