Question 1

If I just sell a product I didn't manufacture, am I really liable?

Accepted Answer

Yes, under Florida's strict liability doctrine. Anyone in the chain of distribution — manufacturer, wholesaler, distributor, retailer — can be named as a defendant in a product injury suit. The plaintiff doesn't have to prove who specifically caused the defect; they just have to prove the product was defective and caused harm. You can pursue the manufacturer for indemnification, but if the manufacturer is overseas or insolvent, you're left holding the bag. Insurance is essential.

Question 2

What's the difference between manufacturing defect, design defect, and failure to warn?

Accepted Answer

Manufacturing defect — something went wrong on the assembly line for that specific unit (a single bad batch of medication). Design defect — the entire product line is inherently unsafe even when made correctly (a vehicle with a known rollover problem). Failure to warn — the product is safe if used properly but lacks adequate warnings about known risks (a power tool without proper safety labeling). All three are actionable under Florida product liability law and covered by standard product liability policies.

Question 3

Does product liability cover recalls?

Accepted Answer

Standard product liability covers third-party injury and property damage claims, but does NOT cover the cost of the recall itself — pulling product from shelves, customer notifications, replacement product, refunds. Recall expense coverage (sometimes called product recall insurance) is a separate endorsement or standalone policy. For food, pharmaceutical, and consumer products, recall coverage is essential — a single voluntary recall can cost $500K–$5M+ in logistics alone.

Question 4

How is product liability premium calculated?

Accepted Answer

Underwriting looks at product type and risk class (food and pharmaceuticals are highest, hardware and apparel are lower), annual sales volume of the products, distribution channels, prior loss history, and quality-control documentation. Florida-specific surcharges apply for products sold heavily into hurricane-rebuild markets (where defective construction products produce concentrated claim spikes). Minimum premiums for low-risk products start around $750–$2,000/year; food and pharma can run $10K+ for $1M limits.

Question 5

Are imported products covered the same way?

Accepted Answer

Yes — and this is exactly where the importer and distributor exposure becomes most acute. If you import products and the foreign manufacturer can't be reached or is judgment-proof, you become the primary target in any product injury suit. Most product liability policies explicitly include imported products, but ensure your declarations include 'importer' or 'distributor' classifications. Some carriers exclude products from specific countries on watchlists.

Question 6

Does my GL automatically include product liability?

Accepted Answer

For most small businesses, yes — Coverage A's products and completed operations subline includes product liability up to the GL limit. The catch is that the limit is shared with all other GL claims, so a major product event can exhaust your aggregate. Companies with significant product exposure often buy a standalone product liability policy with its own limit, especially if their revenue concentrates on physical products vs. services.

Question 7

What documentation should I keep to defend a product claim?

Accepted Answer

Manufacturer specifications and quality-control records, your own QC and inspection logs, supplier indemnification agreements, batch and lot tracking records, customer complaint logs, and proof of compliance testing. Florida product cases are won and lost on the documentation chain — businesses with rigorous batch tracking and tested supplier indemnity agreements settle for a fraction of those without it.

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