Personal Lines
Shop Owners
Product Liability for Retailers: What It Covers That General Liability Doesn't
Aaron Ameduri
Last reviewed: September 23, 2026
General liability covers injuries that happen on your premises or from your operations. Product liability, usually included in a BOP's general liability section but sometimes limited, covers claims that a product you sold caused injury or damage after it left your store. For most retailers it's already there in some form, but the limits and exclusions are worth actually checking.
Where retailers get caught off guard
- Products manufactured overseas or by small vendors with no real liability coverage of their own
- Reselling used, refurbished, or private-label products under your own name
- Products that get modified or combined with something else before the injury happens
Why the manufacturer's coverage isn't automatically enough
Even if the manufacturer carries their own liability coverage, an injured customer can still name the retailer in a claim. Whether the manufacturer's policy actually protects you depends on your contract with them and whether you're named as an additional insured on their policy.
What actually protects a retailer
Your own product liability coverage, sized to what you actually sell, plus additional insured status on vendor policies where you can get it. Private-label or house-brand products usually carry more exposure than reselling name-brand goods as-is.
What it depends on
The real risk depends heavily on what category of product you sell. A furniture or hardware store carries different exposure than a clothing boutique, and that difference should show up in your limits, not just a generic policy everyone gets.
Common questions
Am I covered if I private-label a product made by someone else? Often carries more exposure than reselling under the original brand, since you're the name on the product. Tell me what you're private-labeling and I'll tell you what changes.
Does this apply to used or secondhand items I resell? Depends on the item and the claim. Worth flagging if resale is a real part of your business, not just occasional.
Send me a rundown of what you're actually selling, and I'll tell you if your current limits make sense for it.
— Aaron