What happens if a customer sues me over a product?
If a customer sues over a product, you face legal defense costs plus any settlement or judgment, and defense alone can run into tens of thousands of dollars even if you win. Product liability insurance provides that legal defense and pays covered settlements up to your limits, so a lawsuit does not have to threaten the business.
Get a free quoteWhat to do
01
Do not ignore it
Legal deadlines are strict; respond and notify your insurer immediately when you learn of a claim or suit.
02
Hand it to your insurer
Product liability includes defense; your insurer typically appoints and pays for counsel for covered claims.
03
Gather records
Assemble the order, product, supplier, and safety documentation.
What product liability covers in a suit
- legal defense costs for covered claims
- settlements and judgments up to your limits
- covered bodily injury and property damage claims
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Defense included, not extra.
Product liability insurance pays to defend covered product claims, win or lose. Get covered from $26/mo, priced on real sales.
From $26/mo
Pay-as-you-sell insurance
- A-rated underwriters
- 42% less than comparable A-rated insurers (avg)
- Quote in 2 minutes
- No annual forecasts
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Questions
FAQ.
How much does it cost to defend a product lawsuit?+
Defending a general liability claim commonly costs more than $75,000 to defend and settle, per industry data, even when the seller is not at fault. Product liability insurance covers that defense for covered claims.
Related
General information, not insurance advice. Sources: Insurance Information Institute. Reviewed 2026-07-01.