Today, “risk” is just part of being in business, but you don’t want to be foolish when selecting what types of products you sell. Today we all face areas of liability so you need to be able to sleep at night and know that you are covered from those risks.
More than likely if you or a manufacturer sell a product, you could have shopped for business product insurance in the past. You may have even come across news of consumer safety issues based on product recalls.
These type of issues can take down even a strong company. There are many benefits of this type of insurance coverage however, it is not a type of insurance that is needed by everyone.
First, to give an idea of exactly what kind of insurance this is, product liability insurance is an insurance policy that covers policyholders in the event that a lawsuit is started as a result of the insured’s product or products.
What this means is that the insured is actually someone who has created some kind of product or possibly many products.
Product Liability Insurance will actually protect the insured if someone does make a claim that their product has either physically or mentally harmed them. Engineering, designing, manufacturing and distributing is a very exciting adventure. Many people dream all of their lives about different products that would be great for the entire world to use.
Many of these people take their dream a step further and actually turn those magnificent ideas into real tangible products. However, if there is some kind of flaw in the product that potentially hurts someone or even poses a risk to harm someone then your lifelong dream may actually turn into a nightmare without the right type of liability insurance coverage.
Now if you are someone who qualifies for product liability coverage, you may be wondering what does this type of insurance policy actually cover. The way this type of coverage is designed is that it will protect the business against losses even if the loss is a result of negligence, or if the policyholder is liable for damage, injury or loss to someone else’s property.
Therefore, this type of product liability policy covers bodily injury and property damage and even claims that arise.
The bodily injury portion of the policy may pay for the affected person or firm for the cost of medical care, loss of service, and restitution in the event that death occurs.
The property damage section of the policy will pay for the value of physical damage to a property in the event that someone’s property was greatly damaged as a result of using your product. With this policy covering so much you may be assuming that this type of insurance is very expensive.
The good news is that there are low-cost liability insurance policies available for product manufacturers and resellers to cover your product business and inventions from recall liability.
For prices on product liability coverage, you should call an insurance agent for a product insurance quote.
A great resource to check out regarding product safety for product manufacturing type business is the U.S. Consumer Product Safety Commission website.