Posts tagged with: product liability insurance

South Carolina insurance company unveils new Firearms and Gun Program

The program is designed to give the firearms and gun businesses greater flexibility in choosing options to tailor coverage to their specific needs.

These options include Professional Liability, Care, Custody and Control Coverage for gunsmiths, Product Recall Withdrawal Expense, ATF Local, State, Federal Proceeding Endorsement, Employee Benefits, Additional Insured Vendors Endorsement and Hired & Non-Owned Auto Liability.

Paul Owens, the manager of Sadler & Company’s Product Liability Division, said that the new firearm business liability insurance represents a vast improvement over previous insurance coverage for firearm stores.

“We have always been able to provide product liability insurance to firearms and gun businesses, but this is the first time we have a had firearms and gun insurance program that was fast, easy and affordable for most businesses within the firearms industry,” he said. “Also, in the past, we really struggled with providing decent property insurance to firearms and gun businesses.”

Under the program, the policy can be written on Occurrence Form, CG 00 01, or Claims Made Form, CG 00 02. Sadler & Company also offers deductible or self-insured retention, and coverage is available in all states except Hawaii and Alaska. Defense cost can provide inside or outside the limits of liability.

Property Insurance is written on Special Form and includes theft coverage, with replacement cost. Other property enhancements include crime coverage, inland marine (Property In Transit), Sump Pump/Water Back Up, Valuable Papers, Electronic Data Liability, Account Receipts, Outdoor Property/Signs and Reward & Fire Protection Devise Recharge. The program also offers Wind/Hail Coverage for businesses not located within one mile of an ocean or certain bodies of water.

Deductibles range from $1,000 to $5,000.

Owens said that the variety of perks and options offered under the program’s property insurance set Sadler & Company’s protection apart.

“Very few insurance carriers want to insure the property of firearms businesses, because of the high theft, fire and pollution exposures they often represent,” Owen explained. “The Sadler firearms program has an A rated insurance carrier that understands the firearms business and provides special comprehensive property coverage for all aspects of the firearms industry.”

“This program allows us to meet the liability, property and professional coverage needs cost-effectively and efficiently,” he said.

Sadler & Company, Inc. is an independent insurance agency that specializes in providing product liability insurance to start-ups and small to medium-sized businesses that manufacture or sell unique and high hazard products. Sadler & Company, Inc is licensed in all 50 states currently insures businesses that manufacture, import and distribute products such as sports equipment, medical devices, pharmaceuticals, dietary supplements, children’s products, scooters, trucking and trailer, chemicals and nanotechnology products.

For more information about the Firearms and Guns Program, visit

How Product Liability Insurance Is Vital to Your Business?

In today’s world, it is very easy to make claims for a small blunder. And nowadays, no matter what the degree of damage is, there is always an option to file a case. Realizing this, most of the business owners are aware of the fact that only one act of carelessness could lead them to the court and those who are wise get their insurance coverage.

Product liability insurance protects the business owners in case if something goes wrong with the product or if the product fails to fulfill the requirements. A product could be of any kind like food products, drugs, etc. Although it is important to mention that what are the things the policy does not cover like if the quality of a product is really bad and there is an intentional or unintentional quality flaw the business losses have to be beard by the owner.

The issues need to be taken seriously when a court is involved, and claims are made. The insurance company would be then taking care of the payments of the claims.

The firms that are involved in the supply chains are also included in it. The reason being the person transferring goods is the only who knew the manufacturing company. As a matter of fact, if a product is having a company’s name, if the company was storing it, involved in repairing n improving it, imported it, or if the manufacturer is out of business; all such cases lead the company to face the claims.

Considering the above discussion, we come to know that the product liability insurance is vital to your business as it serves to save your money and energy.

Product liability insurance is increasingly becoming one of the most important business decisions for any business organization in recent times. With the advent of mass production and mass consumption, businesses are at risk of liabilities when a customer or consumer suffers personal injury, or other forms of negative consequence when a product malfunctions or turns out to be defective.

The interesting thing about product liability cases is that there is a likelihood that the consumer gets the sympathies of the courtroom against the monster business giant that has produced or sold the defective product. This is mostly because the courtrooms are inhabited by judges and juries who tend to identify with the consumer and feel that they could have been the victim, rather than identifying with the corporate entity.

Product liability claims can be made in various ways.

Generally, though, there are two basic classifications of product liability.

There is a type of product liability claim that is made when a user suffers injury because of inadequate or lack of proper warnings as to the inherent defects of a product. This type of liability is technically based on fault, and the manufacturer of the product may be liable to intentional misrepresentation or fraud as well be held liable for sheer negligence.

The other category of liability is the strict liability, which is when a manufacturer is held liable because of inadequate information. This liability is usually borne due to the long line of parties involved in manufacturing to the distribution of the product.

Liability insurance for products is therefore needed to protect businesses against potential liability and losses due to claims that might be brought by buyers of the product or even third parties who have suffered directly or indirectly from the malfunction, dysfunction or defectiveness of a product.

Eliminate Your Fears and Doubts about Selling Products with Some Risk

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.

Product Liability Insurance Coverage Tips for the Business Minded

Today’s business world is much different than in the past when things were a lot simpler and life was less complicated. There were your basic products for everyday living and name brands you came to depend on. Now, there is a vast array of products to choose from all competing for the same consumers, and businesses need to know how to protect themselves in the event of unforeseen circumstances.

Forward thinking is the norm and being prepared for anything has become a way of life for most major manufacturers and even small companies.

When you think of your product, do you think of all the implications that can arise from its use? Or do you focus solely on getting the product in the hands of the consumer and advertising to keep your brand name in the minds of the public? Most companies think of all these things and more.

They have come to realize that they are just as vulnerable to mishaps like property damage and injury arising from the use of their products as anything else. That is why companies focus on protection by obtaining product liability insurance coverage.

Product liability insurance protects companies in the event that the products they have manufactured injure someone or cause property damage. In the case of lawsuits, product liability insurance protects a business financially due to claims or product defects. If you manufacture products to sell to the public it is a good idea to get product liability insurance so you can avoid unpleasant situations like a lawsuit that could possibly put you into bankruptcy or cause you to go out of business.

Product liability insurance policies go a long way in giving you the security you need as a business to produce products that are useful and valuable to your customers. However, you need to be aware of the implications arising from producing your products once they get into the hands of the consumers that will purchase them.

Liability Protection Tip: Be sure that warning labels are plain to see in how to use the product and how not to use the product. Also, perform some type of quality assurance control check before releasing the product to the public, such as making sure that the product works as stated and that it is free of product defects.

As a business it is your responsibility to produce products that are safe for use by the general public. Although you may have product liability insurance, going the extra mile to ensure the safety of your products will speak volumes about your company.

How to Know If Your Business Needs Product Indemnity Insurance

Liability is not a word many sellers and manufacturers like to use or hear in a sentence containing one or more of their products. However, like it or not, product liability is major theme that, whether you make, sell, or lease a product, you should be well aware of. Unfortunately, somewhere along the way in your business, more likely than not, you will be found liable for an injury caused by a product that your business sells to the public.

Having adequate defective products indemnity insurance coverage is essential to anyone who distributes products (whether you make, sell, or lease them does not matter). There are basically two types of product liability. Understanding these will not only help you in realizing why you need product liability insurance, but also help you prevent any future insurance claims. The first type of product liability is that based on fault. If a person is injured by a product because the product was misrepresented to that person, such as omitting to disclose a defect about the product, the distributor of that product can be held liable for intentional misrepresentation or fraud. If the product is assembled incorrectly, the product failed to be tested, or failures of due care are committed by the distributor of the product, that person can be held liable through an action of negligence.

The second type of product liability is that which is based on strict liability. Strict liability is a somewhat more advanced topic, as it applies liability without fault. It is under this type of product liability, for instance, that a product would fall if there a defect that results from inadequate instructions. Questions concerning strict liability and its implications on your product would be best left to an attorney to answer on a one on one basis. Regardless, hopefully this small introduction about product liability does help express the magnitude of product liability. Product liability is applicable to every product manufactured, sold, or leased. Therefore, product liability insurance at essential to all those who distribute products.

Is Your Small Business Legally Covered by Product Liability Insurance?

Product liability insurance is a requirement for just about all types of businesses. If at the manufacturing level, something is made defective, insurance is needed there. If this defective product works its way through the chain to wholesalers and then retailers, both can be sued too, therefore, it is incumbent upon them to buy product liability insurance too.

Product liability insurance covers the manufacturer or seller’s liability to the buyer, user or just someone who might have been injured standing next to the product. A defect or malfunction in the product design is what you are being protected against, in the age of lawsuits, some frivolous. If a warning label, like on a motorcycle, was not included, this can be grounds for damages in a lawsuit.

Commercial sellers and re-sellers fail to obtain insurance in many cases because they think that they did not manufacture the product and are not libel. This is a grave mistake. Most states in the United States adhere to the “stream of commerce” notion. This states that if you are involved with the product in any way from manufacture to resale, to sell and to use, you are in the stream of liability. You must check your general business insurance to see if liability insurance is included.

If you under-report the sale of potentially defective or dangerous products to pay a lower premium on liability insurance and are caught, there are steep penalties applied. It is also important to list your items accurately. If you list an item that is more dangerous to the user as one that is not, then you will pay unnecessary higher premium rates. An example being a ladder is more dangerous than a chair, so you do not want to count chairs as ladders sold. Report your sales accurately, premiums are charged by item and volume of sales.

When you go into business liability insurance and product liability insurance must be counted in when figuring how much money is needed to start a business. Many people omit important costs of doing business and run into financial problems early in the life of the business.

The Benefit of Negligence Insurance Protection for Product Liability

If you are into the product manufacturing business, you must get business insurance for products . This can protect you against damage claims made by people who have been harmed by the products. You can get protection against consecutive damage too. Serial damage is the damage of multiple persons from any defect of a product series. Liability can be reduced with the help of the law. The liability for damages can be reduced in a contributory negligence of the injured party.

A product liability insurance option can cover these types of damages.

The general rules related to product liability insurance are based on contributory Accident Liability from Product Defect. The validity of claims is a significant factor. The claims of the injured is barred beyond three years after the victim becomes aware of the damage. The limitation is due to the negotiations between the parties. Moreover, the law refers to the Provisions of the Civil Code. However, if more than 10 years has passed since the marketing of the product, there can be no more claims. In this case, you will not need the product liability insurance. nevertheless, the claim will be valid if there is a pending dispute or pending collection procedures.

Liability for defective products is the situation in which a manufacturer incurs problems due to a security breach of any of its products or services causing damage to any person whatsoever. This is a special regime of responsibility.

The product liability insurance can cover damage claims related to this. Liability for defective products was born July 25, 1985 in the form of a Community directive. It was 13 years later that this directive was finally transposed into law. The law inserted the articles on the responsibility for defective products under the Civil Code. In 1998, law introduced this liability regime with two fundamental characteristics:

  • Character of public policy: it means that we cannot deviate from the provisions by agreement with respect to the product liability insurance.
  • An optional character theory: it actually tends to be exclusive. According to the letter of the Directive, the victim could, if it wished, sue for its damages upon the basis of this law, or the common law.

However, the Court of Justice of the US Communities has imposed a restrictive interpretation of product liability insurance, which tends to displace any other regime of strict liability if the terms of this special scheme are met. The 1st Civil Chamber of the Court of Cassation has complied with this interpretation in 2007. Nevertheless, other decisions of this Court are expected to see the final confirmation. In US law, the exclusive nature of the liability for defective products makes product liability insurance a priority.

The scope of the purpose is quite big. The Civil Code defines the product in an extremely broad way. In its definition, only properties are excluded. An object will be considered a product, even if it is incorporated in a building, including the products of the soil, livestock, hunting and fishing. Electricity is considered to be a product as well. Thus, you will get product liability insurance coverage for electrical goods. The Civil Code defines repairable damage widely too. The provisions of this title shall apply to compensation for damage resulting from a personal injury. They also apply to repair of the damage with an amount determined by decree. The product liability insurance can protect the manufacturer from all sorts of damage claims.

Why Imported Products Need Liability Insurance Coverage

Every month there are many products that are imported from overseas that will be sold to consumers. Many of these products will cause product liability claims and suits.

The companies that sell and distribute these products should make sure they are protected with products liability insurance coverage from a good insurance company.

A product liability claim can cost a business many thousands of dollars and even million dollars but a small product liability insurance policy will cost just a few thousand dollars.

Why Product Liability Coverage is a Must for Product Manufacturing and Sales

Product liability negligence can be very serious if a claim is made and your business is involved. Businesses that manufacture or sell products have risks that must have defense to product liability claims making a products liability insurance policy necessary. The product liability policy has some limits of coverage. The insurers limit their interventions to a certain amount per claim per year In addition; they encourage the entrepreneur to set up a prevention policy which is as effective as possible.

However, unlike other insurance policies for which the guarantee applies to claims that were between the date of inception of the contract and the date of termination, the product liability insurance may be applicable outside of this contract period too; provided of course that the insured has signed the two extensions specific for this type of contract.

These extensions are as follows:

  • A clause that focuses on “recovery of the past” that can take care of damage to products manufactured or delivered prior to the date of effect. The claim of the victim is made under contract;
  • And “subsequent” guarantee, which requires the insurer to support events that occur after the termination of the contract.

Product liability insurance covers damages to third parties. The liability insurance protects the insured against the claims made against him by third parties seeking his responsibility towards victims to obtain compensation for the damage caused to them.

Product liability insurance provides corporate responsibility after a cause of action for negligence, omission or negligence in the performance of products.

This liability insurance also covers expenses incurred by the insured for its own defense and or the company.

Products liability refers to the liability for damages against the manufacturer. This is for damages arising out of the end-users due to a defective product. It is in the Product Liability Act of most countries. The Defendant must be a manufacturer within the meaning of product liability law. A company needs to be considered valid as a manufacturer for the purposes of the Act.

The manufacturer is initially the one who makes the final product, but he is also a manufacturer of components within the scope. Another important aspect of product liability insurance is marketing. Starting point for the liability of the manufacturer is the fact that he has brought the defective product into circulation.

The Product Liability Act excludes the liability of the manufacturer, if he did not put the product into circulation.

The product liability claim of the injured needs to be made within three years after the victim becomes aware of the damage and the person liable must have knowledge or should have become aware about the damage. Your product liability insurance can cover this claim. It is inhibited by negotiations between the parties.

Even someone who is not the actual manufacturer of a product, must follow the liability concerns. For example, a party can pose as the manufacturer by affixing their name, trade mark or other distinctive mark. Here, the presence or application of a brand name or a trademark on the product is not absolutely necessary. Overall, this insurance policy can be of great help to you and when needed, it can help you save a lot of money.

A Few Simple Tips When Applying for Product Liability Coverage

product-liability-claimProduct liability insurance belongs to a type of liability insurance coverage, which typically does not contain a general structured plan. It is dependent on the type of business, like some may want to purchase the policy for sports goods or any other popular sort of business, and some may want it for an industrial or a less publicized business.

The companies involved in making goods are in a huge need of insurance as there is a usual practice to sue the firm for manufacturing defects, product imperfection, bad output, etc. There are a lot of points that you need to keep in mind while planning to purchase a product liability insurance policy.

Furthermore, you should be very careful while selecting your insurance agency.

Here are some tips that prove to be very helpful in the process of selection of an insurance agency and policy:

  • Have a thorough look at the areas covered by the insurance policy and see if it legally covers complex issues.
  • Many of the business professionals are not clear about their insurance coverage; it could be a result of an intentional or may be the unintentional lack of explanation by the insurance expert in the haste of selling the policy. In fact, many of the people confuse the term product liability with general public liability insurance.
  • It is worthy to note that both the policies are quite different from each other. Product liability insurance is meant to shield the business owner from any lawsuits resulting from a bad yield; whereas the policy that deals with all kinds of community dealings involved in a business is what we call a public liability insurance policy. As a matter of fact, both insurance plans are equally important for running a safe business, but most of the time people think that the policies as an alternative of each other.

The wiser decision is to choose an insurance plan that has qualities of both the policies and provides wider coverage.