Product Liability Insurance or product recall coverage is necessary for any product manufacturer, importer or product seller business that offers products to others. This is due to issues with product liability negligence, misrepresentation and even injuries or damages that are caused by the products sold and purchased.
No matter how confident you are in your products, you still have the need for liability insurance coverage to protect you from potential lawsuits.
Even if your product is not to blame you could lose everything you worked for if you are not protected by products liability coverage. As a small business owner, you can rest a little easier at night if you have insurance protection covering you.
The recent US recession might have tempted you to cut corners on side expenses, but coverage such as liability insurance on your products is one thing you can’t go without.
Here are some situations you could be sued into oblivion over if you’re not adequately insured: Forgetting to include a warning on a product or having inadequate warnings. And almost anything can be construed as ‘inadequate’ these days. It doesn’t have to be a product you made yourself, even – it can just be something you sold or distributed to sellers, or merely altered or improved for a fee.
Similarly, injury-causing products are a bane to any company. If it can possibly someone or something in any way, and that person is willing to sue you, you’ll have a tough time of it without insurance to pay them off. How many products do you know that is completely incapable of hurting anything or anyone? Don’t forget intangible ‘things’ like electronic information!
A company can also be held responsible for base design flaws in a product, and a design flaw can be a lot of different things. Since design inherently has to compromise the wants and needs of the user with the realities of physics and the finances available to manufacture it, it’s almost impossible for a design to be truly flawless.
So if your company has anything to do with any product… and it probably does… then
you’ll want product liability insurance to take care of all those nebulous hazardous situations that not only might but will probably arise.
It’s scarcely possible to function in today’s market without it, and you’ll be surprised at how quickly the benefits make up for the premium cost.