Do you sell products that could result in a claim against your company? If so any claim resulting from such a scenario would also be considered a claim under product liability. How will my business benefit from a products liability policy?
Well, the simple answer is that in the event of a claim you dont have to worry about losing money.
Claims for bodily injury are notoriously unpredictable as are claims for damage to property. Look at the news and we see million dollar awards for such cases every day.
Furthermore, these claims often involve product lawsuits which can be both expensive and extremely stressful. It is much better to get the protection you need purchase getting an insurance policy than it is to deal with the consequences of not having a policy in place.
So, It is a very good idea for each and every business to have business product liability insurance. This not only protects themselves and their company, but it also provides protection for the consumers themselves. This type of insurance protects the business from all sides.
Mainly, it is liability insurance protection against claims that consumers make concerning their product.
This includes the manufacturing and selling of foods, medicines, and other goods made available to the public.
It will also cover both the manufacturer’s and seller’s liability for losses and injuries to a buyer, user, or bystander caused by defect or malfunction of the product. In some cases, it will even protect against inadequate information that is included in the warning that comes with the product. The three main types of claims that consumers can make of a product are as follows. Product flaw: the product, while in its making, ends up unsafe for the general public.
Design defect: Somebody claims that the actual idea and design is not safe enough to even be produced.
Defective warnings or instructions: this is when sufficient warnings of the product or instructions on how to use the product are not included. No matter what kind of claim that it is, such things can actually destroy a company. It really does not matter what kind of product the business is selling. Product liability insurance is a must at all times for all companies no matter what size they are.