Who Should We Seek Protection With Product Liability Coverage?

Product liability is a major concern for businesses, but some don’t realize that they even need product liability insurance for product claim protection. Sadly, many business owners falsely assume that only the manufacturer of a product would be liable for any injuries or damage that a user of a defective product might incur.

The truth is, there are many different businesses that could be held responsible for injury or damage arising from a defective product, and the manufacturer is only one of those.

In addition to manufacturers, distributors, re-conditioners, lessors, middle-men, retailers, and even many court cases where employers have be sued for issues related to product liability.

The liability of defective products that inflict property damage or bodily injury can in fact be extended throughout the entire chain of distribution, starting with the company who manufactured the product, continuing through the distributors of the product, any middle-men who handled the product, any conditioning companies who refurbished the product, and then the retailer who sold the product.

One of the biggest mistakes a company can make is to assume that they are safe from product liability, if they had anything at all to do with the chain of distribution of a product.  The best case of action is to have a product liability insurance policy for your type of business.