Posts tagged with: product liability insurance coverage

Why Protect Your Business With a Product Liability Insurance Policy

Product liability insurance goes further than a general liability insurance. While in some instances general liability coverage, offers coverage for product liability, to a certain extent, a product liability insurance coverage specifically protects against damages which a product you supply may cause. Additionally, it provides protection from unforeseen occurrences such as product defects.

Oftentimes, business operators overlook the dangers that could occur from use of a product they sell, manufacture or distribute. Consequently, many businesses today are faced with numerous lawsuits and claims of injury, for which they are unprepared to handle legal liability.

Consumers at times find the design of a product unsafe. The defect sometimes may be a part of the manufacturing process. In the event a product you supplied was unsafe or has caused damages as a result, your legal implications of product liability would be covered by your risk policy and would serve as a protection for you in this case.

There are occasions also where the directions on how to use the product was insufficient or was just not available. Under these circumstances, someone can misuse the product causing injury to himself and others, or damage and loss to a third person’s property. You, the supplier can be held liable for the damages caused, as it is essential that warnings about a product and directions on how to safely use should be included with the product.

If you operate any business that manufactures, refurbishes, sells or distributes a product in any manner, it is essential to protect your business from damages of this nature. A liability insurance coverage can save your business from major financial loss and in some cases total ruin.

A Look at How Product Liability Coverage Works and Who Needs It

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.

Personal Injury Liability Due To Defective Products

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 about applying for a product liability insurance quote, visit or call 1-800-622-7370 and ask for coverage.