Product liability coverage
If you make and/or sell products to other businesses or consumers, you may be held responsible for any injury or damage caused by those products. A defect or malfunction of the product you make or sell could cause bodily injury or damage to property. This is when product liability insurance will protect you against a lawsuit.
Three types of product liability claims
The most common types of product liability claims are:
- Manufacturing flaws: some claims accuse the manufacturer of having some flaw in their production process that caused the product to malfunction during use. Think of all of the tools or gadgets around the house; if one of them breaks while being used and causes damage or injury, that is grounds for a lawsuit.
- Design defect: some claims allege that the design of the product itself is unsafe and should never have been made and sold like that.
- Inadequate warnings: in some cases, a lawsuit will be filed claiming that there was no proper instruction on how to use the product safely. For example, some products need to be used in properly ventilated areas so that fumes do not harm the user or cause an explosion.
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Who needs product liability insurance?
Clearly any business manufacturing any kind of products for sale, such as food, hardware items, furniture, clothing, sporting equipment, etc., needs to be protected by product liability insurance. In addition, sellers including wholesalers and distributors also need to be protected from claims. Any vendor may be held liable or accountable for an injury to a product purchaser because they helped market the product to the end consumer.
Product liability coverage and rates
Usually product liability coverage is included in most commercial general liability policies. The rates for product liability coverage will depend upon the nature of the products you make or sell. If you manufacture potentially hazardous products, you will likely have to obtain a specialized product liability policy. Some manufacturers choose to provide coverage for sellers of their products by adding this option to their own policy, reassuring their vendors of the integrity of their products.
Quotes for product liability insurance
For a no-obligation quote and to learn more about affordable customized protection for your business feel free to call us today at 1-800-731-2228.