Product Liability Insurance Calculator

Because Annual Premium is calculated as Annual Product Revenue multiplied by a set of rate factors (product type, distribution scope, coverage limit, units sold), the revenue term cancels out completely when you divide Annual Premium back by Annual Product Revenue to get the percentage. Revenue alone changes the dollar size of your premium, but it can never change what share of revenue that premium represents -- only the risk factors can do that.

Medical devices carry the highest base rate in this model, followed by children's products, reflecting the greater severity and frequency of claims typically associated with those categories -- a defective medical device or a hazard in a child's toy tends to produce more serious claims than a defect in, say, a household consumer good. Consumer goods carry the lowest base rate of the six categories modeled here.

International distribution carries a 1.4x factor in this model against 1.0x for national and 0.8x for local/regional -- so moving from local to international raises the premium 75%, and moving from national to international raises it 40%. Broader geographic exposure means more jurisdictions, more potential claimants, and more varied product liability law to account for; national distribution sits between the two, reflecting a middle level of exposure.

Yes -- Annual Premium never decreases as Annual Units Sold increases in this model; it either stays flat within a volume bracket or steps up once you cross into a higher-volume bracket, since more units in the market represent more chances for a claim to occur. The volume factor moves in discrete brackets instead of scaling continuously, so the premium can hold steady across a wide range of unit counts before jumping at each bracket boundary.