In 1979, the United States Department of Commerce established The Model Uniform Product Liability Act. The reason for establishing this act was to "help to assure that persons injured by reasonably unsafe products receive reasonable compensation for their injuries. It should also help to stabilize product liability insurance rates." This act defines the scope and the various terms used in connection with products liability. It also establishes certain basic standards of responsibility for manufacturers and product sellers. It establishes the relevance of compliance or noncompliance with legislative or administrative regulatory standards. It also establishes compliance with whether or not a product is deemed defective.
So, how do you obtain coverage? First, have a conversation with your agent. They will most likely have you fill out an application regarding the details of your product. Questions may range from the products intended purpose and who the end user will be. As far as the premium goes, it's going to depend largely on the overall exposure/risk and estimated gross sales. Certain products have a minimum premium, which means that is the least amount of premium to be charged by the insurance company for providing a particular insurance coverage.
What if you have a policy, but are not sure whether you have coverage? Look at the Declarations Page of your Commercial General Liability policy. It will look something like this:
If you have any questions about Product Liability, please feel free to contact us.