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Before you sign a manufacturing contract or ship a device, list each product, intended use, design and production roles, software features, study use, and sales territory. Ask the broker to compare that product description with the proposed liability and property terms.
Consider product liability, product recall, cyber liability, commercial property, and tools, equipment and inland marine. Start with the coverages tied to your day-to-day operations, then use the situations and buying questions below to compare your options.
You move from prototype work into a device study, contract manufacturing, distribution, or commercial sale.
Ask a specialist how the proposed product-liability wording treats your device, intended use, software, study stage, and sales territories.[1][2]
Which devices, accessories, stages, territories, and allegations are included, and what exclusions, limits, and sublimits apply?
A defect, field issue, customer request, or product change could lead you to stop sales or withdraw a device.
Ask a specialist whether a separate product-recall form is available for your device and what event and expense definitions it uses.[1]
Which events trigger the form, and are customer notification, shipping, replacement, consultant, and lost-income costs included or excluded?
Your device connects to a network, transmits patient data, or depends on a cloud or software vendor.
NAIC says cyber policies are customized and distinguishes first-party incident costs from third-party claims. Describe the connected features and vendors, then compare the actual cyber terms with those systems.[3][4]
How do the proposed terms treat device data, vendors, incident response, service interruption, and claims alleging a connected feature caused harm?
You lease a workshop or lab, buy production equipment, or keep prototypes and inventory at a site.
California’s commercial guide describes property at a business location and explains that values, covered causes, and deductibles affect the quote. List each site, machine, prototype, and inventory value.[5]
Which property and locations are scheduled, what valuation basis applies, and which causes of loss, deductibles, and exclusions affect the quote?
You take prototypes, demo devices, tools, or test equipment to a customer, trade show, or study site.
Ask whether inland-marine terms fit the equipment and movement you need to insure. California’s guide treats movable and in-transit property separately from property at a fixed location; check the actual items, routes, and stages.[5]
Which devices, tools, routes, handlers, and loading or installation stages are addressed, and what exclusions apply while equipment is away from the listed site?
List every device and accessory, intended use, sales territory, and manufacturing or service role. FDA says the Quality Management System Regulation applies to finished device manufacturers intending commercial distribution; use that distinction to describe your current stage, not to infer insurance coverage.[1]
If a test or diagnostic feature is part of the product, describe the assay, instrument, specimen workflow, and result use separately. FDA’s IVD overview says classification affects the product pathway and is nonbinding guidance.[2]
Identify which entity designs, makes, labels, tests, installs, and services each device. Share customer indemnities and manufacturer or distributor agreements with the broker, then ask where those activities appear in the application and which exclusions or sublimits affect them.[1][5]
For connected products, list software features, data flows, and vendors. Compare cyber and product-related questions with the actual wording rather than assuming a connected-device feature is handled by one policy label.[3][4]
No. FDA guidance helps describe the device, intended use, and product stage. Ask the broker to identify the forms and exclusions relevant to a claim, recall expense, or customer contract requirement.[1][2]
Read the Full AnswerBefore the first shipment, give the broker the device’s intended use, manufacturer and distributor roles, territory, and destination; add contract, installation, service, and transit details when they apply.[1][5]
Read the Full AnswerConfirm the stated finished-device manufacturer scope when describing your product stage; it does not determine insurance response.
Describe an in-vitro diagnostic product and its intended use when it is part of your device.
Review California guidance on business property, liability, and movable property; compare it with the policy form.
Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.
Updated 2026-09-28. Editorial Policy
Spot, which publishes this research, gets quotes from 50+ providers, picks the options that fit your coverage and budget, and manages renewals after you buy. The first consultation is free. Book a free consultation
