iMedia — Small business breaking news and online buzz

Protecting Your Business With Product Liability Insurance Coverage

As a business owner, you strive to create products that are high-quality and safe for your customers.

However, even the most well-designed products can sometimes cause harm or damage, leading to costly lawsuits and legal fees.

This is where product liability insurance comes in, offering essential protection against claims related to bodily injury or property damage caused by your products.

Product liability insurance is a crucial form of coverage that can provide peace of mind for business owners of all sizes.

In this article, we will explore the basics of product liability insurance, including what it covers and why it is essential for any business that sells products.

We will also discuss other important types of insurance that businesses should consider to ensure comprehensive protection.

By the end of this article, you will have a better understanding of how product liability insurance can help protect your business and minimize your risk of financial loss.

Key Takeaways

Product liability insurance helps protect businesses from claims related to bodily injury or property damage caused by their products.
Manufacturers, retailers, and wholesale and distribution businesses can all benefit from product liability insurance.
General liability insurance is an important type of insurance for businesses to have and can also cover other types of claims such as bodily injury and property damage claims.
Businesses should regularly review their insurance coverage to ensure they have the right types and amounts of coverage.

Coverage Basics

Product liability insurance is an essential coverage for businesses that manufacture, distribute, or sell products.

This insurance policy can provide coverage for bodily injury or property damage claims related to product defects, including design defects, manufacturing defects, strict liability, and improper warning claims.

In the event of a product liability claim, the insurance policy can cover medical costs, legal fees, settlements, and judgments related to the claim. It is important to note that product liability insurance may have certain exclusions, such as intentional misconduct or fraudulent behavior.

Additionally, the product liability claim process can be complex and may require the assistance of legal professionals.

To ensure that your business is adequately protected, it is recommended to review your product liability insurance policy regularly and seek guidance from your insurance provider regarding common exclusions in product liability insurance.

General Liability Insurance

General liability insurance is an essential form of coverage for businesses to have, as it can safeguard against a range of potential claims.

This type of insurance provides protection against bodily injury and property damage claims, which can arise from accidents that occur on business premises or as a result of business activities. General liability insurance also covers legal fees, settlements, and judgments related to these claims.

When considering the benefits of general liability insurance, it is important for businesses to compare the cost of coverage against potential losses. In many cases, the cost of a general liability insurance policy is far less than the potential costs associated with a single claim.

Moreover, general liability insurance can provide peace of mind and help businesses avoid financial ruin in the event of a claim. By investing in this type of coverage, businesses can protect their assets and reputation, and focus on growing their business without worrying about potential liabilities.

PROS	CONS
Can cover a range of claims, including bodily injury and property damage	May not cover all types of claims
Can provide protection against potential financial losses	Can be costly for some businesses
Can give businesses peace of mind	May require businesses to pay a deductible before coverage kicks in
Can help businesses avoid financial ruin in the event of a claim	May have policy limits that are not sufficient for some businesses
Can be a requirement for certain contracts or leases	May not be available to all businesses in all areas

Other Important Insurance Types

Aside from general liability insurance, there are several other types of insurance that businesses should consider, which can be crucial in preventing catastrophic financial losses in the event of unforeseen circumstances.

Workers’ compensation insurance is one such type. This insurance is designed to protect employees who are injured or become ill as a result of their work. It provides medical care, lost wages, and other benefits to the affected employees, in exchange for their agreement not to sue the employer for negligence.

Another important type of insurance that businesses should consider is cyber liability insurance. With the increasing reliance on technology, businesses are becoming more vulnerable to cyber attacks, which can result in data breaches, identity theft, and other forms of cybercrime.

Cyber liability insurance can help businesses cover the costs of responding to a cyber attack, such as hiring a forensic investigator, notifying affected individuals, and providing credit monitoring services. It can also cover the costs of defending against lawsuits and paying damages to affected individuals or regulatory agencies.

Frequently Asked Questions

What types of products are typically excluded from product liability insurance coverage?

Common exclusions from product liability insurance coverage include intentional misconduct, contractual liability, criminal acts, and pollution-related claims.

In addition, product liability insurance may not cover claims related to products that have been altered or modified after leaving the manufacturer, or claims arising from the failure to comply with regulatory requirements.

Legal implications of these exclusions can result in businesses facing significant financial losses if they are found liable for product-related injuries or damages and do not have the appropriate coverage.

It is important for businesses to carefully review their policy and understand the limitations of their coverage to ensure they have adequate protection in place.

How does the claims process work for product liability insurance?

When a claim is made against a business for product liability, the claims process begins with the injured party or their representative filing a claim with the business’s insurance provider.

The insurance provider will then investigate the claim and determine whether or not the claim is covered under the policy.

If the claim is covered, the insurance provider will work with the business’s legal representation to negotiate a settlement with the injured party.

Settlement negotiations may involve determining the extent of damages, such as medical costs and lost wages.

If a settlement cannot be reached, the case may go to court, where the business’s legal representation will present a defense.

It is important for businesses to have adequate product liability insurance coverage in place to protect against such claims and to seek guidance from their insurance provider and legal representation throughout the claims process.

Can product liability insurance also cover damage to a customer’s property caused by a defective product?

Product liability insurance can cover damage to a customer’s property caused by a defective product through property damage coverage. This coverage can help businesses protect themselves from legal requirements related to property damage claims, which can arise due to a faulty product.

However, the extent of coverage may vary depending on the specific policy and circumstances of the claim.

As such, businesses should carefully review their product liability coverage to ensure that it includes property damage coverage and meets their needs. Additionally, businesses should consult with their insurance providers to fully understand the scope of their coverage and any legal requirements related to product liability claims.

Are there any industries or businesses that are not eligible for product liability insurance?

Niche industries may face challenges in obtaining product liability insurance, as eligibility criteria may vary depending on the insurance provider and the specific industry.

For example, some insurance providers may have restrictions on coverage for high-risk industries such as aviation or explosives manufacturing.

Additionally, businesses that have a history of product defects or lawsuits may also face limitations on their eligibility for product liability insurance.

It is important for businesses to research and compare insurance providers to find the best fit for their unique needs and to ensure that they meet the eligibility criteria for coverage.

What steps can businesses take to reduce their risk of product liability claims?

Businesses can take several steps to reduce their risk of product liability claims. One of the most important steps is to conduct proper product testing to ensure that the product is safe and free from defects.

This can include testing for potential hazards, as well as conducting quality control inspections throughout the manufacturing process.

In addition, businesses should provide clear warning labels and instructions for use to help prevent accidents and injuries. These labels should be prominently displayed on the packaging and should include any potential risks or side effects associated with the product.

By taking these steps, businesses can help minimize the risk of product liability claims and protect themselves from potential legal and financial consequences.

Understanding Zumba Instructor Liability Insurance: Protecting Yourself and Your Business

As a Zumba instructor, you are responsible for the safety of your students during your classes. In this article, you will learn about the importance of liability insurance, the different types of coverage that are available to you, and how to obtain the right policy for your needs.

You will also find answers to some frequently asked questions about Zumba instructor liability insurance. By the end of this article, you will have a better understanding of how to protect yourself and your business in case of any accidents or incidents that may occur during your group classes. So, keep reading to learn more about Zumba instructor liability insurance.

Zumba instructor’s are likely to be aware of the importance of liability insurance. This type of insurance can protect you in the event that someone is injured during one of your group classes. It’s important to understand the types of coverage that are available to you, as well as how to obtain the right policy for your needs.

When it comes to liability insurance for Zumba instructors, there are a few different types of coverage that you should consider. The first is general liability insurance, which provides protection against claims of bodily injury or property damage that may occur during your classes. This can include things like slips and falls, as well as injuries sustained during the course of a workout.

Another type of coverage that you may want to consider is professional liability insurance. This type of insurance can protect you in the event that someone sues you for negligence or other types of professional misconduct. This can include things like giving incorrect instructions or failing to properly supervise your class.

To obtain the right policy for your needs, it’s important to shop around and compare different insurance providers. You should also be sure to provide accurate information about your business, including the type of classes you teach and the number of students you typically have in each class.

What is Zumba instructor liability insurance?

Zumba instructor liability insurance is a type of insurance that protects instructors in the event that someone is injured during one of their group classes.

It can provide coverage for things like bodily injury or property damage, as well as professional misconduct.

Why do I need Zumba instructor liability insurance?

As a Zumba instructor, you are responsible for the safety of your students during your classes.

Liability insurance can provide protection in the event that an accident or incident occurs, such as a slip and fall or an injury sustained during the course of a workout.

This can help to safeguard your business and personal assets in the event of a lawsuit.

What types of coverage are available for Zumba instructors?

There are a few different types of coverage available for Zumba instructors, including general liability insurance and professional liability insurance.

General liability insurance provides protection against claims of bodily injury or property damage, while professional liability insurance can protect you in the event that someone sues you for negligence or other types of professional misconduct.

How can I find the right policy for my needs?

To find the right policy for your needs, it’s important to shop around and compare different insurance providers. You should also be sure to provide accurate information about your business, including the type of classes you teach and the number of students you typically have in each class.

Additionally, you may want to consider working with a specialized insurance provider that caters to fitness professionals.

Is Zumba instructor liability insurance required by law?

There is no specific law that requires Zumba instructors to have liability insurance, but it is highly recommended.

Many gyms and fitness facilities will require instructors to have liability insurance before teaching classes on their premises.

Having liability insurance can also protect your personal assets and business in case of a lawsuit.

Are there any discounts or special offers available for Zumba instructor liability insurance?

Some insurance providers may offer discounts or special offers for Zumba instructors, such as group rates for multiple instructors or package deals that include other types of insurance.

Be sure to ask about any discounts or special offers that may be available when you are shopping for a policy.

Additionally, you may want to consider working with a specialized insurance provider like Sadler & Company, that caters to fitness professionals and can provide you with Zumba Instructor Insurance.

Ultimately, as a Zumba instructor, it’s important to protect yourself and your business with the right liability insurance policy. By understanding the types of coverage that are available and taking the time to find the right policy for your needs, you can ensure that you are protected in the event of any accidents or incidents that may occur during your group classes.

Examining the Consequences of Defective Product Liability: A Look at Real-Life Cases

When a consumer purchases a product, they expect it to be safe and free of defects. However, this is not always the case. Defective products can cause serious injuries and even death, leading to legal action against the manufacturer or seller.

In this article, we will examine the consequences of defective product liability by looking at real-life cases.

One high-profile example of defective product liability is the case of the Ford Pinto. In the 1970s, Ford manufactured a car called the Pinto. It was later discovered that the car had a defect in its fuel system that caused it to catch fire in rear-end collisions. This defect led to numerous deaths and injuries, and Ford was eventually held liable for the damages.

Another example of defective product liability is the case of the Johnson & Johnson DePuy hip implant. In 2010, it was revealed that the implant had a high failure rate and could cause serious injuries. Johnson & Johnson was hit with numerous lawsuits and ultimately agreed to a $2.5 billion settlement.

These are just two examples of the many cases of defective product liability that have occurred over the years. These cases highlight the importance of product safety and the consequences that can arise when a product is found to be defective.

Manufacturers and sellers have a legal responsibility to ensure that their products are safe for consumers.

If a product is found to be defective and causes harm, the manufacturer or seller can be held liable for the damages.

This includes compensation for medical expenses, lost wages, and pain and suffering.

Who can be held liable for a defective product?

The manufacturer, seller or distributor of a defective product can be held liable for any harm or injury caused by the defect.

What constitutes a defective product?

A defective product is one that is unreasonably dangerous or does not meet the reasonable expectations of consumers. This includes products with design defects, manufacturing defects, and failure to provide adequate warnings or instructions.

What types of compensation can be sought in a defective product liability case?

In a defective product liability case, compensation can include medical expenses, lost wages, and pain and suffering. In some cases, punitive damages may also be sought if the manufacturer or seller’s actions are deemed particularly reckless or negligent.

Can a consumer be held liable for a defective product?

No, the consumer is not held liable for the defects of the product, it is the manufacturer, seller, and distributor that are held liable for any harm caused by a defective product.

How can I report a defective product?

You can report a defective product to the Consumer Product Safety Commission (CPSC) by calling the CPSC Hotline at (800) 638-2772, or by visiting their website at www.cpsc.gov. You can also contact the manufacturer or seller directly to report the defect.

What should I do if I have been injured by a defective product?

If you have been injured by a defective product, it is important to seek medical attention immediately.

You should also contact an attorney who specializes in defective product liability to discuss your legal options. Additionally, you should keep the product and any related documentation, such as the receipt, packaging, and instructions, as they may be useful in any legal action.

In conclusion, defective product liability is a serious issue that can have devastating consequences for both the consumer and the manufacturer or seller.

It is crucial for manufacturers and sellers to take their responsibility to ensure product safety seriously and to take appropriate action if a defect is discovered.

Consumers also have a role to play by reporting any defects they encounter to the appropriate authorities.

By working together, we can help to reduce the number of defective products on the market and prevent the tragic consequences that can result from their use.

Understanding Strict Liability in Product Liability Claims: How to Protect Your Legal Rights

As a consumer, you want to make sure the products you use are safe and reliable. But sometimes, a product can cause injury or harm, even if it was designed and manufactured correctly.

In these cases, manufacturers can be held liable under the legal doctrine of strict liability.

In this article, you’ll learn about strict liability and how it differs from negligence, the three types of defects that can give rise to a strict liability claim, and how to determine if you have grounds for a products liability claim based on strict liability.

Additionally, You’ll also learn about the staggering injuries and deaths caused by consumer product related incidents. Understanding these concepts can help protect your rights as a consumer and ensure manufacturers are held accountable for the safety of their products.

In general, manufacturers have a duty to make sure their products are safe for consumers. This duty is usually set forth in the common law of negligence.

Negligence is the failure to take reasonable care to avoid foreseeable harm. In other words, if a manufacturer makes a product that it knows or should know is dangerous, it can be held liable in a negligence action if someone is hurt by that product.

According to the U.S Consumer Product Safety Commission, there were an estimated 15,000 deaths and 29 million injuries resulting from consumer product-related incidents in 2018.

However, there is another legal doctrine that may apply to product liability claims, and that is strict liability.

Under strict liability, a manufacturer can be held liable for injuries caused by its product even if the manufacturer was not negligent.

In other words, strict liability does not require a showing of negligence. All that is required is that the plaintiff was injured by the product.

The elements of a strict liability claim are:

The defendant must have manufactured or sold the product
The plaintiff must have been injured by the product
The injury must have been caused by a defect in the product

There are three types of defects that can give rise to a strict liability claim: design defects, manufacturing defects, and marketing defects.

A design defect exists when the design of the product makes it unreasonably dangerous to consumers. To recover under a theory of design defect, the plaintiff must show that there was a safer alternative design available at the time the product was manufactured, and that the defendant should have used that alternative design.

A manufacturing defect exists when there is something wrong with the actual physical product itself, as opposed to the design of the product. Manufacturing defects are usually caused by errors made during the manufacturing process. To recover under a theory of manufacturing defect, the plaintiff must show that he or she was using the product as intended and that the defect made the product unreasonably dangerous.

Finally, a marketing defect arises when there is something wrong with the warnings or instructions provided with the product. For example, if a warning label on a bottle of chemicals fails to warn of a particular hazard posed by those chemicals, then that could be considered a marketing defect.

To recover under a theory of marketing defect, the plaintiff must show that he or she followed all warnings and instructions provided with the product, and that those warnings and instructions were inadequate.

Products liability claims based on strict liability are becoming more common as society becomes increasingly litigious. If you run a product-based business you need to make sure you have insurance for products liability. If you have been injured by a defective product, you may want to speak with an attorney to see if you have grounds for such a claim.

Product Liability: Understanding Your Responsibilities as a Manufacturer, Distributor, or Retailer

Product liability is a legal term that refers to the responsibility of manufacturers, distributors, and retailers to ensure that the products they sell are safe and free from defects. This includes the obligation to warn consumers of any potential dangers associated with using their products.

As a product manufacturer, distributor, or retailer, it’s important to understand your responsibilities and the potential risks associated with product liability. In this article, we’ll provide an overview of the concept of product liability and offer some tips for minimizing your risks as a business.

What is product liability?

Product liability is the legal responsibility of a manufacturer, distributor, or retailer to ensure that the products they sell are safe and free from defects. This liability arises from the sale of a product and is based on the idea that consumers should be able to use products without fear of injury or harm.

If a product is found to be defective or unsafe, the manufacturer, distributor, or retailer can be held liable for any injuries or damages caused by the product. This means that they may be required to pay compensation to the injured party and may also face legal action.

Types of product defects

There are three main types of product defects that can give rise to product liability:

Design defects: These are defects that exist in the design of the product. For example, if a car has a design defect that makes it prone to rolling over, the manufacturer could be held liable for any injuries or damages that result from this defect.

Manufacturing defects: These are defects that occur during the manufacturing process. For example, if a batch of toys is manufactured with lead paint, the manufacturer could be held liable for any injuries or damages that result from the use of those toys.

Warning defects: These are defects that arise from the failure to provide adequate warnings or instructions for the use of a product. For example, if a medication is sold without proper warning labels, the manufacturer could be held liable for any injuries or damages that result from the use of that medication.

Minimizing your risks as a business

As a product manufacturer, distributor, or retailer, there are several steps you can take to minimize your risks and protect yourself from product liability claims. These include:

Conduct thorough testing: It’s important to thoroughly test your products to ensure they are safe and free from defects. This includes conducting both laboratory and real-world testing to identify any potential issues.

Use high-quality materials: Using high-quality materials can help to reduce the risk of defects in your products. This means choosing materials that are durable, reliable, and safe for use in your products.

Implement a robust quality control system: A robust quality control system can help to identify and prevent defects in your products. This can include regular inspections and testing of materials, as well as regular checks on the manufacturing process.

Provide clear instructions and warnings: It’s important to provide clear instructions and warnings for the use of your products. This can help to prevent injuries and reduce the risk of product liability claims.

Consider purchasing product liability insurance: Product liability insurance can provide financial protection in the event of a product liability claim. This can help to cover the costs of legal fees and compensation, as well as any other expenses associated with a product liability claim.

Conclusion

Product liability is a serious issue that all manufacturers, distributors, and retailers need to be aware of. By understanding your responsibilities and taking steps to minimize your risks, you can help to protect yourself and your business from product liability claims. This can include conducting thorough testing, using high-quality materials, implementing a robust quality control system, providing clear instructions and warnings, and considering purchasing

How to Protect Your Product and Your Brand with Liability Insurance

So you’ve got an idea for a new product that is going to fill a need that no one has thought of before. And you know that the manufacturing of this product and sales will bring in lots of money.

But before you count the eggs before they’ve hatched, you need to do one more thing besides get your product designed and manufactured and sold.

You need to protect yourself and your brand by investing in quality product liability coverage to be safe.

Just in case there happens to be a manufacturing or design defect in your product and the customers who buy your product receive an injury or some harm because of your product, you could be sued and that kind of incident can ruin your business and everything else in your life.

Don’t take the chance of being sued for some unknown defect in the product. Protect yourself by getting Product Liability Insurance.

It’s the American dream to own your own business and be an entrepreneur. Getting your product design started and finding a way to manufacture the product can take up a lot of your energy and time.

Then you need to find a way to sell your product, whether it be through a commercial on TV or standing out on the street selling it. But don’t get ahead of yourself.

Protect yourself from losing your business or your home by getting a recall policy for products to cover your business in case of a liability suit due to claims or defects that cause the product to be dangerous.

This type of policy can help with your General Liability policy to cover loss to personal property, business ownership, injury or death.

The products can be toys, building materials, pet food or supplies, clothes, or electronic devices that you will need insurance to cover. These are just a few examples of products that can be covered.

When you invest in product liability coverage, you are covered for liability for damage, loss to another’s property or injury. In most cases, the insurance company will pay for legal defense fees and settlement charges.

If you would like to get a product insurance quote, all you need to do is get in touch with SADLER product liability coverage company online and find out how inexpensive it will be for you to cover your product and company.

You’ll also find out what it takes to be covered for bodily injury to pay for the affected person’s medical bills or restitution for death if your product was involved in the the injury.

When you get in touch with the liability insurance company, you’ll find that a custom-made policy can be created just for your product or company.

Get your product liability coverage started right away; don’t procrastinate.

Is Product Liability Insurance Important to Carry?

A lot of people think that products such as office equipment used within a business are not worth insuring since they tend to depreciate and lose value over time.

Besides, they can become obsolete owing to the rapid development and innovation of new products.

Insuring products and equipment would be covered in a general product liability insurance policy.

Proper product insurance would protect from equipment liability no matter if the product is located or contained within an insured building, farm, ranch, commercial complex or warehouse.

However, there is some equipment, which is brought to the client’s location or house.

Since they are not part of the structure that is insured, it follows that the equipment is not insured.

Take, for example, example, LCD projectors. If the business is into renting out special equipment, the business income is derived from the lease of such equipment.

In the transport or delivery of this equipment, it is mishandled or jiggled, resulting in it being smashed or broken.

The business then loses income from its lease and may even get a lawsuit for not delivering what it promised. Furthermore, replacing projectors would cost the business, especially if they are state-of-the-art and very expensive.

For this reason, a special liability insurance policy is handy.

It covers myriads of equipment for many small businesses such as those used by

artisan contractors,
fine art dealers,
photographers,
performers, and
veterinarians.
It can also cover the products carried by a trucker such as beverages, fragile products, and grocery items.
It can even cover vending machine’s and materials installed at the home, such as heaters.In the present-day market, very few companies are unaware of the concept of product liability insurance.

In order to avoid any unpleasant consequences due to liability charges against your company, you definitely need to have a security policy of product liability insurance.

Are you thinking that you can avoid liability issues?

Well, this is more of fantasy because liability charges are hard to avoid the fact.

These days, not a single company can escape liability charges with complete success!

So, there is nothing better than staying prepared for it beforehand and the very obvious and feasible solution comes in the form of product liability insurance policies.

There are primarily two types of product liabilities. Once you learn about these types, you will be aware of the reasons for which you must go for the insurance policy.

Moreover, product liability insurance policies also help companies avoid any undesirable or sudden damage by liability charges or insurance claims. The first type of liability is one that is based on ‘fault‘.

The second liability type is termed as ‘strict liability‘. You must analyze every possible detail about product liability insurance, before going for an insurance policy. Definitely, you would not like to make a wrong or least thought decision.

Plan out your strategy and analyze all the available options before picking one insurance policy against product liability issues.

Remember, one well-thought decision may pay off in the long run and may also save you from vast damage or loss.

A Brief Look at The Purpose of the Multiple Listing Service (MLS)

There is a lot of confusion as to what a MLS listing actually is and how it works for buyers and sellers of real estate. If you are not that much connected to MLS but are willing to become a member of MLS, here are some lines which actually discuss how the MLS system works.

The multiple listing services (MLS) which sometimes be called as multiple listing systems (MLS) works by serving as a venue and technology provider for local real estate brokers to combine their homebuyers and show properties that are for sale.

As the whole process of bringing a unique product of MLS includes a lot of workforces, technology implementation, maintenance, research, and development etc, to supply the database, the user fee will be implied on the agents and brokers that access it, by the MLS.

To continue our discussion on this, some brokerages usually will include the MLS fee within the package as a compliment to attract agents. However, most agencies make the real estate agents to pay the fee by themselves.

Now, it is important to make it clear that only licensed agents will get access to MLS. In this regard, one has to consider the fees that have to be paid to a local real estate board as a part of the total cost.

Here, one may get a doubt about the ways to access the MLS without a license. But, these are the rare conditions even it includes an involvement of the real estate agent anyways.
How much does it cost to be a member of MLS?

To get access to the MLS usually costs between $20 and $50 a month, depending on the MLS. This fee is on top of any other fees you are implied to pay as a member of the real estate board which operates locally. However, this fee may also increase if one wishes to link their website via RETS.

MLS systems contain information about the attributes of a property. This information is extracted and maintained by real estate professionals who are knowledgeable and experienced in the local marketplace, whereas public real estate websites contain only a glimpse of property data.

Apart from the key terms like Find homes for sale, new homes and resale homes, new construction, acreage, lots, land, commercial property, and investment property.

Some MLS providers also include the features like news on real estate, question and answers on common real estate issues, some real estate classes, information on mortgage and mortgage calculator. Hence it is always a worth to be a member of MLS.

Should Your Small Business Carry a Products Indemnity Insurance Policy

When it comes to selling, manufacturing, distributing, or otherwise being involved with product distribution to consumers, product liability business insurance is a must-have.

Product liability insurance protects a business against financial losses by covering legal expenses arising from claims and lawsuits that are based on product defects or exclusions of warnings that subsequently cause injury or damage.

But how do you know if your business needs a product liability insurance policy combined with a General Liability policy? You may be wondering if a product indemnity policy is only for businesses who sell retail products or who manufacture a product. You may have wondered if product liability is only needed for businesses who deal with products that have a higher chance of causing damage or injury.

The truth is that if you have anything to do at all with the cycle of distribution of a product – meaning, if you manufacture, refurbish, test, distribute, or sell a product, then you are at risk of being sued if anyone is injured because of the use of that product… if the injury is caused by a defect, a flaw in the design of the product, or an exclusion of warnings about how to use the product.

Now, if you’re selling a low-risk item, such as socks, then it might not be something you want to invest into. However, know that even socks have a risk – if someone slips & falls in the socks that you were involved in the distribution of, for example, then you could be sued.

The cost of a product liability insurance for a low-risk product will be significantly less than the cost of a policy for a high-risk product (such as nutraceuticals and dietary supplements), that carry health risks.

Proper liability insurance is certainly something every applicable business owner should at the very least check into.

If you are not sure if your business should carry an insurance policy for products liability, make sure you ask a specialized insurance company for help.

Does A Lessor Need a Product Liability Insurance Policy?

It might be unimaginable for a company who is in business for leasing out equipment to others to need insurance coverage for product liability. The company also buys the equipment that it generates income from. However, clients dont see it that way. What they do understand is that a company who leases out equipment impliedly guarantees that the equipment they do lease out is fully functional and safe to use.

If an accident happens because the equipment overheated or malfunctioned, the lessee will likely claim for damages.

This scenario highlights the importance of a product liability insurance that covers the business activities of a lessor. Most, if not all lessors, lease out electronic equipment such as strobe lights, projectors, smoke and bubble machines and other paraphernalia that are often used to hold special events. These devices have the tendency to overheat, malfunction or explode, causing injuries to the users, and to bystanders as well. It could be dangerous and may become an extravagant affair.

Due to the disaster the defective equipment could create an embarrassing or upsetting situation that arises from such an event, the lessor is likely to face a damaging lawsuit.

When this happens, a lessor who is protected with a product liability insurance need not worry. Proceeds of the insurance can pay for the claims stated in the lawsuit.

The cost that a business would likely focus on is repairing or replacing a damaged or worthless equipment. In this way, the cash flow that a business gets is spent on an asset that can further generate income rather than on expenses to maintain its existence.