Product Liability Insurance in Vermont

If you’re a business owner in Vermont who manufactures, distributes, or sells products, you may be aware of the risks that come with bringing goods to market. Even with quality control measures and safety standards in place, things can still go wrong. That’s where product liability insurance may help. At Lonergan & Thomas, we assist Vermont businesses in understanding their options for managing product-related risks.

What is Product Liability Insurance?

Product liability insurance is a type of business insurance that may offer financial protection if a product causes harm to a consumer or their property. This type of coverage can be important for manufacturers, wholesalers, distributors, and retailers throughout Vermont. Whether you’re making handmade goods in a small shop or importing electronics, product liability claims can arise unexpectedly.

Coverage options may address a range of potential claims, including design defects, manufacturing flaws, and issues related to marketing or labeling. Every business is different, and policies can often be tailored to reflect the unique risks of your industry and operations.

Why Should Businesses Consider Product Liability Insurance?

Vermont businesses—especially those that produce or sell physical goods—can be exposed to product-related lawsuits. Even a single claim could bring legal costs, reputational damage, and business interruption. For example, a product could cause an allergic reaction, malfunction and result in injury, or be accused of failing to meet safety standards.

Product liability insurance may help cover legal defense fees, settlements, and court-awarded damages, depending on the policy. Without insurance, these costs could fall entirely on the business owner. For many companies in Vermont, that kind of financial burden could be difficult to recover from.

Who Typically Needs Product Liability Insurance in Vermont?

Many types of Vermont businesses might find product liability insurance valuable. These can include:

• Food producers and beverage makers
• Local artisans and craft manufacturers
• Health and beauty product creators
• Home goods and appliance retailers
• Outdoor gear and equipment sellers
• Clothing and accessory brands

Even if your business doesn’t manufacture a product, you may still face exposure if you sell or distribute it. In Vermont, liability can sometimes extend to businesses that played a role in getting a product into the hands of consumers.

What Factors Affect the Cost of Product Liability Insurance?

Several variables may influence the cost of product liability insurance in Vermont. These often include:

• Type of products sold: Higher-risk products may result in higher premiums.
• Annual revenue: More sales can mean more exposure to claims.
• Business role in the supply chain: Manufacturers may face different pricing than retailers or wholesalers.
• Claims history: Previous lawsuits or losses could impact the cost.
• Coverage limits and deductibles: Higher limits or lower deductibles generally increase premium costs.

At Lonergan & Thomas, we work with Vermont businesses to explore options that align with their budget and risk tolerance.

How Does Product Liability Insurance Fit into a Larger Risk Management Plan?

Product liability insurance is just one piece of a broader risk management strategy. Vermont businesses often combine it with general liability insurance, commercial property insurance, and other coverage types depending on their operations.

For instance, a Vermont food producer may carry product liability insurance for claims related to consumption, while also maintaining property coverage for their production facility and general liability insurance for customer slip-and-fall incidents. Taking a holistic approach to insurance can provide more complete protection.

What Should Vermont Businesses Look For in a Product Liability Policy?

When reviewing product liability insurance options, Vermont business owners may want to consider the following:

• Scope of coverage: Are the kinds of products you handle included?
• Exclusions and limitations: Are there any notable gaps in protection?
• Claims process: How does the insurer handle defense and settlements?
• Carrier reputation: Is the insurance company known for reliable service?

Every policy is different. It’s helpful to review the details with a licensed insurance professional who understands both Vermont’s market and your business type.

How Can Lonergan & Thomas Help With Product Liability Insurance?

At Lonergan & Thomas, we’ve served Vermont’s business community for years. As an independent insurance agency, we partner with a range of insurance carriers to help our clients compare product liability coverage options.

Our process typically starts with a conversation about your products, operations, and any current policies in place. From there, we can help identify potential gaps and explore solutions that make sense for your goals and risk profile. We aim to make insurance easier to understand—without the pressure or jargon.