How to Choose the Best Insurance Policy for Product Liability Protection


It is not enough to know how important product liability insurance is to the financial protection of your business.

You also need to be aware that it is equally important to know how to select the best insurance policy for product liability protection for your business; a policy that would cover your interests in the most efficient way possible. It is also important to aim for the most cost-effective deal available.

Choosing a suitable insurance policy for product liability issues particular to you is largely dependent on a number of factors. One salient factor is the size of your product business as there are many products liability lawsuits so you need proper coverage.

There are policies suitable for large product businesses, and there are policies suitable for small ones; in this regard, a decision should be guided largely by premiums levels.

Another important issue is the nature of the business. This is important because it determines the kind of harm or damage that has the highest risk of manifestation.

The type of insurance policy for product liability issues chosen should be one that is able to adequately cater to all the areas your specific business could be held liable.

In this modern era of class suits and expensive litigation, many people have often tried to get a company sued either rightly or wrongly, sometime people don’t even know when they have a good case against a particular company, instead of seeing a lawyer or even a paralegal and narrating gibberish about how you feel let down by a product.

An agency such as SADLER that specializes in product liability coverage might be a great fit for you as they offer free legal advice for your specific type of business needs.

It is always better to have a background knowledge about what constitutes a product liability insurance and types of products that are most likely to be highly defective.

Firstly, if you believe you are injured by using a product, the first person you will talk to is your lawyer, don’t get me wrong!

Lawyers come first but to avoid wasting your time and appearing like a cheap and exploitative maniac, it is always best to look out for some basic things that will confirm product liability, such minor things will be outlined below.

  • Negligence – There are no two ways to this; the word negligence, refers to a manufacturers failure to produce a safe or healthy product.
  • Misrepresentation of information-This is a classic loop hole in the defendant¬ís case, in this case the manufacturer. It mostly comes in as a form of marketing error, either intentional or not, if a seller promotes a product or advertises in such a way as to hide or misinform the public about the dangers of such product, then the manufacturer may be held liable for the injuries suffered, or held to be negligent in representing the products danger.
  • Breach of warranty-This happens when a company fails to adhere to the promises it has made to the customer before or while purchasing a product, if this failure causes injury to someone that person may surely have a sure fire case against such manufacturer.

For instance, if your product is food-based or cosmetic product liability in nature, the type of policy that would be advisable to go for is one that provides coverage against harmful ingredients.

Products that are not ingested or consumed but are used by consumers to facilitate certain actions, and can cause physical harm, such as working tools and kitchen equipment would be covered best by the type that protects against liabilities accruing from design-related defects.

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