In an economy such as we have in front of us today, businesses have to be aware that any financial difficulty or unexpected expense could be their very downfall. There could never be a more appropriate time to consider business liability insurance and risks you might be facing.
Business liability can mean a lot of different things and there are insurance products designed for a variety of different business liability risks. One such product is product liability insurance.
Any company who sells a product to the public must make sure that they are capable of meeting head-on any problems that might come from that.
Product liability insurance is intended to cover damages and legal expenses that arise from claims against you and your legal responsibility.
Even if youre not a manufacturer if youre a supplier, for example, a purchaser, user, or even a bystander can sue you, the manufacturer and anyone else who they feel should have noticed a defect in the product. You would be responsible for any judgment against you, and most likely for legal claims also, and this is where product liability insurance comes in to cover those fees.
Business owners never want to see a lawsuit, and they certainly dont intend to wind up paying a lot of money out in a product liability case. But not planning for the possibility can be the end for many businesses who sell products.
How to Cover Your Business Assets With Product Liability Insurance?
If you are involved in any way with the process of delivering a product to consumers, and youre without product liability insurance coverage, youre in a position about as risky as the parachutist who fails to ensure that hes hooked up before jumping from a plane.
In most courts, anyone in the chain of delivery of a product, from manufacturer to retailer can potentially be held liable if a consumer is harmed by that product. Increasingly, the burden of proof in liability suits is on the plaintiff and that, my friend, is you.
Payouts in liability cases include medical costs, court costs, and often, a hefty sum for emotional distress. While youre adding the costs up, dont forget what you have to pay your own lawyer.
If youre a small business, losing one liability lawsuit can wipe you out.
Insurance premiums aren’t cheap, and you might question why you need to pay them. Think of this way lets say you look out this morning and it’s cloudy. It might rain, and you have to decide whether or not to carry an umbrella. If it doesnt rain, youre stuck with lugging an umbrella around all day. But, thats a minor inconvenience compared to what happens if youre caught in the rain with one.
Consider product liability insurance policies to cover your assets and to guard against the rain of a liability suit which could really soak you.