Before shopping for a product liability insurance policy, it is understandable for you to wonder if you even need one in the first place. Well, as you’re bound to discover in your search for relevance and necessity, you will come to realize that virtually every business owner needs to invest in product liability coverage.
If you are a product manufacturer, YES, you need product liability insurance coverage!
In fact, even if nobody else in the entire business world needed insurance, you couldn’t possibly find a way to escape needing it. You would be the primary target in any damage or liability claim sought by a consumer with respect to your product; after all, you perform the most relevant and crucial function in the whole distribution chain. When something goes wrong the buck stops with you. Even if you’re acquitted in court, it would still be to your advantage to have an insurance policy you can rely on to cover your legal expenses.
If you’re an importer, exporter, retailer, or wholesaler; yes, you too need product liability insurance coverage. Under law, you are just as liable as manufacturers. In fact, if you were instrumental in the creation of a product, or in any change, repair, or enhancement made to said product, you are very liable in regard to that product; especially if it bears your brand name. Your liability becomes even more evident if the manufacturer of the product is too far to be reached by judicial instruments of the sovereign government.