In the current climes in which we find ourselves, people are very fast in making litigation claims against virtually anyone, and with regards virtually anything. In fact these days, it rarely matters if the case is something minor or major.
With this in mind business owners know that they are one mistake away from litigation and as such, most of them get product liability insurance coverage for the risks associated with the products being sold.
With the product liability insurance, a business owner is protected against litigations and claims relating to any of the products they manufacture or sell.
Products referred to include food and drugs. It must be pointed out though that this type of insurance policy does not cover whatever losses the owner of the business owner might have suffered owing to badly manufacture products that were supplied to the public.
It only comes into play when a business has been taken to court and claims made. The insuring firm just takes on the cost of the claims made.
Even companies that deal on supplies only are not exempted from this. This is because the individual that bought from the supplying firm only knows the firm he or she bought it from. In fact, a company will be liable to face claims if their business name is on the product, if they changed, repaired or restored the product if they imported the goods and if the manufacturing company is out of business.
Having put all these into consideration, it is very important therefore that a business has this as it prevents them from losing money in two ways.
Do You Have Product Liability Insurance for Your Business?
Actually, Insurance policies generally refer to policies which help individuals protect themselves from losses.
The more common types of insurance are auto insurance (takes care of financial losses arising from accidents), home insurance (protects the homeowner from damages in structures), health insurance (takes up hospital costs) and life insurance (helps in taking care of the burial costs and living expenses of beneficiaries).
Getting quality product liability insurance is one that is not really as common, as fewer people know about it.
Business owners have to shoulder the blame when any of their products are viewed as bad by any prospective customer. In this case what usually happens is that the customer takes the business to the court stating what needs to be paid to him or her as compensation for using or buying the bad product.
If the company in question has product liability insurance coverage, it would be very easy for them to bring in their insurance company to handle the case and shoulder the costs that will be incurred owing to the aggrieved customer’s claims.
If the business doesn’t have product liability insurance, they will not only lose funds to the customer’s claims but also they would lose potential customers in the future ensuring that their business takes a big hit from both sides.
If you don’t have this insurance policy, it is very expedient that you get one. You could talk with your current insurance provider and see what options they have for you or better still shop around for better deals.