Even the most trusted products and services experience an occasional glitch which can trigger a product liability insurance claim and significant loss if not insured—whether or not you were directly involved in a safety violation, a product contamination, a bodily injury or the result of an operational malfunction.
Product Liability Insurance – Your critical safety net
Product Liability insurance claims that are brought against you can imperil the viability of your business. Product Liability insurance transfers the financial risk of loss from your business to an insurance carrier in exchange for an insurance premium. A well-designed insurance program can help you manage and fund any judgements, rulings or settlements against your business and ensure that your operations can carry on and achieve future success. Product Liability insurance can be purchased for a specific application or as part of a Comprehensive General Liability policy.
Product Liability coverage is important if you are designing, manufacturing, marketing for distribution, etc., products or components of any sort. Product Liability insurance provides defense and indemnification against the cost of judgments, settlements and legal fees arising from damages or “alleged damages” caused by a faulty or defective product.
Here is a guide to see if you need product liability coverage:
- Are you a business that manufactures your own products or relabels someone else’s products?
- Are you a business that contracts or subcontracts the manufacture of products?
- Are you a business that imports goods from overseas?
If you answered ‘yes’ to any of these scenarios, you should strongly consider obtaining a Product Liability insurance policy.
What’s included in a Product Liability policy?
A typical Product Liability insurance policy covers goods and products manufactured, sold, handled or distributed by you and/or your company. This includes the disposal of products and goods as well. You may also be covered in situations where ample notices regarding warnings or instructions about your products have been determined to be inadequate and, as mentioned above, a key part of a Product Liability insurance policy is the provision that the insurer will provide the insured with a defense against any lawsuits regardless of the ultimate disposition of a claim.
In general, rates for product liability insurance are based upon a number of factors including, but not limited to the following:
- Guarantees and warranties;
- Clarity of instruction;
- Appropriateness of intended use;
- Advertising claims;
- Possible risks the product poses to those who use it.
Learn more about Product Liability Insurance
Contact us and see how we can help you find the peace of mind with a product liability insurance policy that will protect your business.