Central Insurance Blog

When it comes to manufacturing and selling products, liability is a fact of life. Most business owners understand that if you cut corners or act negligently, you can be held responsible for injuries or damages your product causes. Strict product liability takes this concept a step further. Under this legal doctrine, a manufacturer, distributor, or seller may be liable for a defective product—even if they did everything right during manufacturing.

Strict product liability is complex and varies by state, but manufacturers need to understand how it works, why it exists, and what steps they can take to manage the risks. In the article below, we dive into the nuances of this vital topic with Rachel Pinsonneault, commercial lines staff underwriter at Central Insurance.

Defining Strict Product Liability

At its core, strict product liability means that a manufacturer can be held responsible for harm caused by a defective product regardless of intent or negligence. Pinsonneault contrasts this with negligence-based liability, where “the injured party must provide documentation or proof that the distributor or seller was negligent in their design, their label, or their production.”

Strict product liability may sound theoretical, but it plays out in very practical ways:

• Food Products: If a consumer becomes sick from eating contaminated chips, the manufacturer could be liable, even if they had no idea contamination occurred and took reasonable precautions against it.
• Electrical Components: A company that makes faulty wiring could be liable if the wires fail and cause a house fire, even if they had passed multiple quality control checks.
• Household Goods: A product like a ladder or chair that collapses under normal use could result in liability, regardless of whether the company followed all design and safety protocols.

These examples show why strict liability is often described as a “no excuses” standard for defective products.

Why Strict Product Liability Exists

Strict product liability exists to protect consumers and ensure fairness. 

“It is in our country’s best interest that manufacturers put in the care to make sure consumers are safe and their product does not damage somebody else’s property or cause injury,” Pinsonneault explains. “They are responsible for the products that they create.”

This framework ensures that companies prioritize safety, and injured consumers don’t face insurmountable challenges proving negligence. 

Pinsonneault also highlights that strict product liability is part of a broader effort to encourage businesses to adopt strong quality controls and rigorous testing. By holding manufacturers accountable, the law helps prevent dangerous products from reaching the market and reassures consumers they can expect a basic level of safety in the goods they purchase. It also levels the playing field between individuals and large corporations, ensuring that those harmed by defective products are not left to bear the financial and personal costs alone.

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Strict Product Liability Variations by State

Because strict product liability laws are state-specific, businesses should not assume the rules are uniform. 

“There’s no standardization across the country on how things are handled,” Pinsonneault notes. “Some states don’t have strict liability at all, but most do. And every state has different rules around statutes of repose and joint liability.”

A statute of repose is a set deadline for filing a product liability claim, and the length of time varies widely by state. The intent is to prevent lawsuits decades after a product was made, when technology is outdated and manufacturers may no longer exist. 

She explains, “You can’t sue a bike manufacturer 50 years from now because you were injured riding a bike they built in 2025. And that’s what the statute of repose is.” 

For Example: California, Georgia, Illinois, and Michigan have some of the shortest timeframes for claims, while Maryland allows a much longer period.

Rules around joint liability also differ by state. In some jurisdictions, a manufacturer may be responsible for all damages, even if other suppliers or contributors also played a role. In others, damages are divided according to each party’s share of fault. “Some states allow you to fully recover from just one party, no matter what percentage their liability is,” Pinsonneault adds. “Others will take whatever the total damage is, and then each party is responsible for their deemed percentage of liability.”

Navigating statutes of repose and joint liability rules requires specialized knowledge of

state-specific laws, so it’s important to work with an experienced product liability attorney. Without legal guidance, you may overlook crucial defenses or fail to understand your full exposure to claims.

Proactive Ways to Manage Strict Product Liability

Ultimately, manufacturers must assume consumers will not always use products as intended. Predicting foreseeable misuse is part of reducing risk. 

Even though strict product liability applies regardless of intent, companies still need to take proactive measures to protect themselves from future issues. Here, Pinsonneault outlines some of her most impactful suggestions:

1. Build safety into every stage of design and production.
2. Provide clear, comprehensive labeling and warnings that clearly outline safe usage, weight limits, and age restrictions.
3. Limit the installation of hazardous products to trained professionals.
4. Maintain robust insurance protection.
5. Document everything from quality control records, legal reviews, to testing logs to show due diligence.

The Role of Insurance in Strict Product Liability

Even the most diligent manufacturer cannot eliminate risk. Accidents happen, and strict product liability ensures companies remain responsible when they do. These situations are where insurance becomes indispensable.

“Insurance is there to cover that exposure,” Pinsonneault points out. “Even if a manufacturer puts in every safety measure and something still goes wrong, they could be held liable under strict liability. General liability insurance—so long as products aren’t excluded—covers what you are liable for.”

She also stresses that businesses need to read their policies carefully. Some general liability policies exclude product liability coverage, leaving manufacturers unexpectedly exposed. In those cases, companies may need a separate products-completed operations policy to ensure adequate protection and you have the coverage that applies specifically to your product.

The Central Difference

With more than a century of industry expertise, Central Insurance understands the complex risks manufacturers face, including the challenges of strict product liability. Our trusted network of independent agents offers tailored guidance, while our nationally recognized claims and loss control teams provide responsive, knowledgeable support when it’s needed most.

From addressing fire-load exposures to navigating liability and emerging cyber threats, Central delivers comprehensive protection and lasting peace of mind—so your business can focus on growth with confidence. Contact your local Central agent to learn more or get started on a quote.