Product liability insurance goes further than a general liability insurance policy. 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 were insufficient or were 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.