Product liability insurance is not mandatory but certainly beneficial if you are involved in any type of retail business that sells, supplies and delivers products to clients.
You and your business can be liable for a liability case that is just a claim even if the product you sell was manufactured by a third party.
Someone running a business should not be under the impression that because the business is only involved in distributing, product liability coverage is unnecessary. Even if your company’s name is not on the product you can end up in court.
Without a commercial product indemnity insurance policy, your business and possibly your home could be in jeopardy.
All product manufacturers, product distributors as well as suppliers and retailers of goods should get a product liability business insurance policy.
Does your business current sell products to the general public? If so there could be a design defect in your product that could cause you to have a liability that you don’t even know about yet.
This would mean that your company could have participated in placing the product into the public where others can purchase it and can be held liable for damages to the end user if something happened to someone due to design defects, manufacturing defects, and even defects in marketing.
If your company provides any products to the consuming public, then your company needs product liability insurance or completed-operations coverage.