Product liability coverage is a type of liability insurance that is vastly misunderstood.
Who needs product liability coverage?, who does it protect?, how are claims filed?, and what type of claims are filed? are all questions that are commonly asked.
Most businesses wind up taking out a general business liability policy, and while those do usually have some product liability coverage, some claims will not be able to be covered using that general policy.
There are some little-known facts surrounding product liability that can drastically impact businesses and the types of insurance they should apply for.
One of these facts is that if someone has a claim for serious personal injury, damage, or loss related to the use of a defective product, they can actually bring that legal claim against any company who was involved in the release of that product to the public, whether the company is the manufacturer, distributor, inspector, wholesaler or retailer.
Another little-known fact is that any person who is harmed by the use of such a product can bring a claim, whether that person bought the product or not, or even if that person wasn’t even using the product!
These are simply two factors in product liability, and why a business should get product liability insurance coverage to stay protected from legal risks due to product defects.
For more information check out our full guide located here.