Product Liability Insurance made simple

Get a great rate on product liability insurance

Best Product Liability Insurance Rates in Canada

General Liability
  • General Liability
  • Product Liability
  • Professional Liability
  • Commercial Property
  • Home-based
  • Other
Under 3 months
  • Under 3 months
  • 3 - 6 months
  • 6 - 12 months
  • 1 - 2 years
  • 2 - 3 years
  • Over 3 years
AB
  • AB
  • BC
  • MB
  • NB
  • NL
  • NS
  • NT
  • NU
  • ON
  • PE
  • QC
  • SK
  • YT
4 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

#1 Choice
Get a Quote

Zensurance

From $19
Per Month
850
Satisfaction Rating
  • Partner with 50+ providers
  • Get a quoute and buy online
  • Easy, manageable payments
Pros & Cons
Extra Details
Popular
Get a Quote

FoxQuilt

From $20
Per Month
835
Satisfaction Rating
  • Get a quoute and buy online
  • Easy, manageable payments
  • US & Canada coverage
Pros & Cons
Extra Details
Best Value
From $26
Per Month
823
Satisfaction Rating
  • Get your insurance in minutes
  • Easy, manageable payments
  • Industry-specific insurance
Pros & Cons
Extra Details
From $29
Per Month
813
Satisfaction Rating
  • Responsive insurance experts
  • Compare rates and coverages
  • Get the perfect insurance policy
Pros & Cons
Extra Details

Product Liability Insurance

In today’s fast-paced business environment, manufacturers, distributors, and retailers face numerous risks when it comes to the products they offer.

Whether it’s a faulty design, manufacturing defect, or incorrect labeling, any mistake can result in injury or property damage, leading to costly lawsuits and settlements. That’s why having a robust product liability insurance policy is critical for protecting your business from unforeseen circumstances.

Product liability insurance is a critical aspect of protecting businesses in Canada from lawsuits and compensation claims related to defective or dangerous products.

As a manufacturer or distributor, you can face financial losses, reputation damage, and even criminal charges if your products cause harm to customers.

To minimize these risks, product liability insurance is a must-have policy that provides coverage against third-party claims and legal fees.

Overview of product Liability insurance in Canada

In Canada, there are several important laws and regulations that govern product liability, including the Consumer Packaging and Labeling Act, the Hazardous Products Act, and the Competition Act.

The Consumer Packaging and Labelling Act requires that all products sold in Canada meet certain standards for labeling and packaging, including information about the product’s composition, weight, and size, as well as warnings or instructions for use.

The Hazardous Products Act requires that all hazardous products sold in Canada must carry appropriate warning labels and be packaged and stored in a safe manner.

The Competition Act prohibits false or misleading advertising, and companies can be held liable for making false or misleading claims about their products.

What is liability?

Liability refers to the legal responsibility or obligation to pay for damages, debts, or losses that one party owes to another. It is a term used in many different contexts, such as contracts, insurance policies, and tort law.

In general, “liability” can refer to the obligation to make financial compensation for harm caused to others, whether that harm is to their person, property, or reputation.

It can also refer to the responsibility for ensuring that products or services are safe for use and meet legal and regulatory standards.

Liability can arise from various sources, such as contracts, product defects, safety incidents, and accidents. 

The concept of liability is critical in many areas of law, including personal injury, product liability, environmental law, and professional malpractice, among others.

What is product liability insurance?

Product liability insurance is a type of insurance that covers businesses that manufacture, distribute, or sell products to customers.

 It protects you from financial losses in case a customer gets injured, or their property gets damaged, due to a product defect.

The policy covers both the cost of compensation claims and legal fees, so you don’t have to pay these expenses out of pocket.

What are some examples of product liability insurance?

Product liability insurance is a type of insurance that covers businesses that manufacture, distribute, or sell products to customers. 

In Canada, product liability laws are governed by the Consumer Protection Act, which holds manufacturers, distributors, and retailers responsible for ensuring that their products are safe for use.

Here are some examples of product liability insurance in Canada:

Food and beverage manufacturers

If you manufacture food or beverage products, product liability insurance can protect you against claims related to food poisoning, contamination, or product recalls.

Toy manufacturers

If you manufacture toys, product liability insurance can protect you against claims related to product defects, choking hazards, or injury claims.

Electronics manufacturers

If you manufacture electronic products, product liability insurance can protect you against claims related to product defects, fire hazards, or injury claims.

Clothing manufacturers

If you manufacture clothing or textiles, product liability insurance can protect you against claims related to product defects, choking hazards, or injury claims.

Medical device manufacturers

If you manufacture medical devices, product liability insurance can protect you against claims related to product defects, injury claims, or product recalls.

Retailers

If you sell products, product liability insurance can protect you against claims related to product defects, injury claims, or product recalls.

These are just a few examples of product liability insurance in Canada, but there are many other types of products and industries that can benefit from this coverage. 

Product Liability Insurance Comparewise 1

Why do you need product liability insurance in Canada?

In Canada, product liability laws are governed by the Consumer Protection Act, which holds manufacturers, distributors, and retailers responsible for ensuring that their products are safe for use.

 If a product is found to be dangerous or defective, the manufacturer is liable for any harm it causes.

Product liability insurance protects businesses from costly lawsuits and compensation claims. It also helps protect your reputation and ensures that you can continue to operate your business even if a claim is filed against you.

What does product liability insurance cover in Canada?

Product liability insurance covers a wide range of third-party claims, including:

Injury claims

If a customer is injured by a product, the policy covers the cost of compensation and legal fees.

Property damage claims

If a product damages a customer’s property, the policy covers the cost of compensation and legal fees.

Recalls

If a product is found to be dangerous or defective and needs to be recalled, the policy covers the cost of the recall and the related expenses.

Legal fees

If a customer files a lawsuit against your business, the policy covers the cost of legal fees and any compensation that may be awarded.

How to choose the right product liability insurance for your business In Canada

Choosing the right product liability insurance for your business can be a daunting task, but here are a few things to consider:

Coverage limits

Make sure that the policy has adequate coverage limits to protect your business against potential claims.

Product type

Different products have different risks, so make sure the policy covers the type of products you manufacture, distribute, or sell.

Legal requirements

Ensure that the policy meets the legal requirements for product liability insurance in Canada.

Cost

Consider the cost of the policy and compare it to the benefits and coverage offered.

Other types of business insurance

Business Insurance in AlbertaBusiness Insurance in ManitobaBusiness Insurance in British ColumbiaBusiness Insurance in New Brunswick
Business Insurance in Nova ScotiaBusiness Insurance in Newfoundland and LabradorBusiness Insurance in OntarioBusiness Insurance in Prince Edward Island
Business Insurance in QuebecBusiness Insurance in Saskatchewan

Discover Investment Opportunities

Make your money do more.

12 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

Young investors can trade stocks and ETFs, all for free.
Min Investment
$0
Target Return
Varied
Retire up to 30% wealthier with Questwealth Portfolio.
Min Investment
$1
Target Return
Varied
Get $20 CAD of BTC with promo code: COMPAREWISE
Min Investment
$100
Target Return
4-7%
Buy and sell gold, silver & platinum online at the best price.
Min Investment
$1
Target Return
Varied
Get up to $150 cash bonus: BONUS150
Min Investment
$0
Target Return
Varied
Flexibility with a great return.
Min Investment
$100
Target Return
5.20%
Get a $50 bonus when you sign up and deposit $250.
Min Investment
$50
Target Return
Varied
Buying and securing gold has never beeng more simple and affordable.
Min Investment
$1
Target Return
Varied
High return on a shorter term.
Min Investment
$500
Target Return
4.25%
Get a $100 welcome bonus, when you make your top-up*
Min Investment
$10
Target Return
Varied
A new passive income asset class, peer-to-peer lending.
Min Investment
$1
Target Return
Varied
Sign Up And Access 65+ Cryptocurrencies Instantly
Min Investment
$10
Target Return
Varied

comparewise

August 29, 2023
Fact Checked

Grow your finances today.

By submitting, you agree to comparewise’s terms of use and privacy policy.

FAQs about product liability insurance

What is product liability insurance?

Product liability insurance is a type of insurance that protects businesses from financial losses due to claims related to product defects, malfunctions, or injury claims resulting from the use of their products. This insurance covers businesses that manufacture, distribute, or sell products to customers, regardless of whether the product was made domestically or abroad. Product liability insurance covers claims made by customers or other parties who have been harmed or suffered damage as a result of using a product. This can include physical injuries, property damage, or other losses that can result from product defects or malfunctions.

Who needs product liability insurance?

Product liability insurance is a type of insurance that is designed to protect businesses that manufacture, distribute, or sell products to customers. This coverage can provide financial protection against claims related to product defects, malfunctions, or injury claims resulting from the use of their products. Businesses that need product liability insurance include:

Manufacturers

If you manufacture products, product liability insurance can protect you against claims related to product defects, malfunctions, or injury claims.  This coverage can provide financial protection against lawsuits, compensation claims, and legal fees.

Distributors

If you distribute products, product liability insurance can protect you against claims related to product defects, malfunctions, or injury claims.  This coverage can provide financial protection against lawsuits, compensation claims, and legal fees.

Retailers

If you sell products, product liability insurance can protect you against claims related to product defects, malfunctions, or injury claims. T his coverage can provide financial protection against lawsuits, compensation claims, and legal fees.

Online Sellers

If you sell products online, product liability insurance can protect you against claims related to product defects, malfunctions, or injury claims.  This coverage can provide financial protection against lawsuits, compensation claims, and legal fees.

Importers

If you import products, product liability insurance can protect you against claims related to product defects, malfunctions, or injury claims.  This coverage can provide financial protection against lawsuits, compensation claims, and legal fees.

How much does product liability insurance cost?

The cost of product liability insurance can vary greatly depending on several factors, such as the type of product being sold, the industry, the size of the business, the number of employees, and the location of the business.  On average, small businesses can expect to pay anywhere from $500 to $3,000 per year for product liability insurance coverage, while larger companies may pay $10,000 or more.  It's best to obtain quotes from multiple insurance providers to get an accurate estimate of the cost for your specific business.

Product Liability Insurance made simple

Get a great rate on product liability insurance

You may also like

Commercial property insurance helps business owners rest assured that the ins...
Commercial auto insurance can help businesses save on repair and recovery cos...
Having accountant insurance gives you the opportunity to focus on quality ser...
Builder’s risk insurance, also known as construction insurance, protects buil...
A business interruption can occur at any time and for any number of reasons. ...
As a restaurant owner, you must safeguard your establishment from possible li...
Security service insurance is a protection that covers security personnel and...
Starting a business is a big step in anyone's life and requires a great deal ...
In today's fast-paced business environment, manufacturers, distributors, and ...
As a photographer, you face a variety of risks on a daily basis. Your livelih...
Paralegal insurance protects against legal mistakes. Being a paralegal is not...
Insurance is an essential aspect of protecting your financial well-being, yet...
Manufacturing is a critical and complex industry that requires a variety of r...
Legal expense insurance offers coverage for various types of legal expenses t...
As a lawn care business owner, you should be aware that proper insurance cove...
In Canada, many people run their businesses out of their homes. They might no...
As a handyperson, you may be wondering if you need business insurance. The an...
Commercial General Liability Insurance (CGL) is another name for General Liab...
As a freelancer, you have the flexibility to work when, where, and for whomev...
Have you ever thought about what would happen if your business's fleet of veh...