Product Liability Insurance Texas
Texas businesses need a partner who understands local product risks and evolving regulations.
• Deep understanding of Texas product liability laws and recent changes
• Expert knowledge of industry-specific risks across Texas's diverse economy
• Customized coverage for Texas-based manufacturers and retailers
We go beyond standard product liability policies with risk management services tailored to Texas businesses. This includes product safety audits, recall preparedness planning, and specialized coverage for Texas's unique business environment, such as protection against claims related to extreme weather events.
• Oil and Gas Equipment Manufacturers: Protection against claims related to equipment failures or environmental damage in Texas's energy sector.
• Food and Beverage Producers: Coverage for contamination risks and compliance with Texas's stringent food safety regulations.
• Tech Hardware Companies: Safeguards against claims of product defects or malfunctions in Texas's growing tech hubs.
• Agricultural Equipment Manufacturers: Protection for claims related to equipment failures affecting Texas's vast agricultural industry.
Let our local experts analyze your current coverage and identify potential gaps or savings for your business.
Comprehensive protection for Texas businesses, addressing local risks and evolving regulatory requirements.
Our Texas product liability insurance safeguards your business against claims arising from product-related injuries or damages. Coverage includes:
• Legal Defense: Full coverage for attorney fees and court costs
• Settlement Protection: Financial coverage for both in-court and out-of-court settlements
• Product Recall Expenses: Coverage for costs associated with product recalls
• Punitive Damages: Protection against punitive damages, where insurable by Texas law
Texas businesses face unique liability challenges:
• Oil & Gas: Coverage for equipment failures leading to environmental damage or worker injuries
• Food & Beverage: Protection against contamination claims and compliance with Texas Health and Safety Code
• Technology: Coverage for software glitches or hardware malfunctions causing financial losses
• Agriculture: Protection for equipment failures affecting crop yields or livestock health
While Texas doesn't mandate product liability insurance, certain industries have specific requirements:
• Medical Devices: FDA compliance and additional liability coverage often required
• Government Contractors: Specific liability coverage often mandated in contracts
• Food Producers: Adherence to Texas Food Establishment Rules may necessitate coverage
• Automotive Parts: Coverage often required by major manufacturers for suppliers
Enhance your Texas business protection with:
• Cyber Liability: Coverage for data breaches related to smart products
• Extended Reporting: Protection for claims made after policy expiration
• Vendor's Coverage: Extends protection to your product distributors
• Foreign Market Coverage: Essential for Texas businesses exporting products
Product liability insurance in Texas costs an average of $1,500 annually. However, your specific premium depends on several factors:
Texas businesses exporting products internationally may face higher premiums due to increased exposure and varying legal landscapes.
Frequently Asked Questions
Quick answers to questions you may have. Can’t find what you’re looking for? Contact us here.
Product Liability Insurance in Texas covers legal costs and damages if your product causes injury or property damage. It's crucial for Texas manufacturers, distributors, and retailers, protecting against claims like design defects, manufacturing flaws, or inadequate warnings. Given Texas's large consumer market and diverse industries, from electronics in Austin to oil equipment in Houston, this coverage is vital across various sectors.
While not legally mandated statewide, Product Liability Insurance is often contractually required in Texas. Many retailers, especially large chains headquartered in cities like Dallas or San Antonio, require suppliers to carry this coverage. Additionally, some Texas industries, particularly those dealing with food, pharmaceuticals, or children's products, may face industry-specific requirements or strong recommendations for this insurance.
Coverage needs vary based on product type and sales volume. In Texas, small businesses often start with $1 million in coverage, while larger companies or those with higher-risk products may need $5-10 million or more. Texas's robust economy and large consumer base can increase potential liability. Factors like selling products nationwide from a Texas base or dealing with high-risk items like machinery or chemicals also influence coverage needs.
Standard Product Liability Insurance in Texas typically doesn't cover recall costs. However, many insurers offer Product Recall Insurance as an add-on. This is particularly important for Texas food manufacturers, given the state's large agricultural sector, or for tech companies in Austin dealing with consumer electronics. Recall coverage can include costs of notifying customers, shipping, disposal, and business interruption specific to the recall event.
Texas follows a 'modified comparative fault' rule in product liability cases, meaning a plaintiff's compensation may be reduced by their percentage of fault, if any. The state also has a statute of repose, limiting the time for filing claims to 15 years after the product's sale. These laws can affect claim frequency and severity, potentially influencing insurance premiums. Texas-based insurers are well-versed in these state-specific legal nuances.
Absolutely. Texas's diverse economy means industry-specific considerations are crucial. Oil and gas companies in Houston might need higher limits due to potential environmental impacts. Austin's tech sector might focus on coverage for software defects. Agricultural businesses in the Texas Panhandle might need coverage for crop-related products. Medical device manufacturers in the Texas Medical Center area would require specialized coverage. It's essential to work with a Texas-based agent familiar with your industry's specific risks.
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For over a decade, TWFG Khan Insurance Services has been the trusted partner for businesses across Texas and neighboring states. We specialize in complex insurance solutions for maritime, oil & gas, and construction industries where standard coverage isn't enough.
Don't let gaps in coverage put your business at risk. Our team of specialists will work with you to create a comprehensive protection plan that keeps your business secure and compliant.
Join the hundreds of businesses who trust us with their most critical insurance needs.
