
Does Your Business Need Product Liability Insurance?
Producing, transporting and selling goods are core components of the U.S. economy. Even relatively simple supply chains may include many moving parts, which could potentially experience an accident or commit an error, leading to dire financial repercussions. The process of getting your products into the hands of consumers is rife with risks and exposures. Fortunately, investing in the right product liability coverage can offset these concerns and help limit potential losses.
What Is Product Liability Insurance?
As its name suggests, this type of coverage can help financially protect your business from third-party losses and expenses arising from issues involving your products. Policies may be available as standalone products, but many companies procure this coverage through a broader general liability insurance policy. Regardless, product liability insurance should be a top priority for any company distributing goods, as even allegations of which you’re eventually absolved could incur significant costs.
Who Needs This Type of Coverage?
Generally, any business involved in the distribution of products and goods should prioritize retaining this type of insurance. Product liability claims may arise from many possible accusations, including the following:
- Design flaws
- Inadequate warnings or instructions
- Spoiled or contaminated goods
- Defective products
Even if your business was not directly at fault for a product’s issues, being a part of the supply chain that distributed it could still land you in court. Manufacturers, distributors, retailers and wholesalers may all need to protect their interests with suitable coverage.
What Can My Policy Cover?
Specifically, your product liability insurance policy may assist with the following losses and expenses arising from incidents involving customers:
- Bodily injuries—If incorrect or insufficient instructions cause a customer’s injuries while using a product, your insurance may help pay for their medical expenses.
- Property damage—A defective product may cause damage to someone’s property, such as faulty wiring starting a fire. In such situations, your coverage could assist with repair costs.
- Legal costs—Your insurance may also help cover attorney fees, settlements and judgments if you’re sued following an alleged incident involving a flawed product.
Get the Right Coverage
Contact SaveDirect Insurance Agency LLC today to learn more about product liability coverage or compare personalized quotes for ideal policies.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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