Product liability insurance is a must in today’s world. It is an agreement between the manufacturer and the customer, which cover both parties in case a defect surfaces with the product and causes harm to the buyer. If you want to be sure that your business is protected from lawsuits arising from consumer harm, you should look into getting this type of coverage. If you already have a product or service that meets this standard, then there’s no need to start shopping around for separate product liability insurance, unless you want to expand your company in the future. Here are a few of the main reasons why it’s important to protect your product.
First, you don’t want to be held liable for the injuries that a customer suffers while using your product. If you’re a manufacturer, you should have product liability protection so that you don’t have to take responsibility for the injuries your product causes. When you sell a product, you’re putting your reputation on the line each time you sell it. You shouldn’t have to worry about damaging your business in the future.
Second, product liability insurance protects you against the expenses incurred by your company due to a product liability claim. Some claims may come from the customer, while others may come from the manufacturer. In either case, you don’t want to find yourself out of pocket for the legal expenses you’ll incur. With product liability insurance, you can protect yourself from excessive attorney fees.
Third, you want product liability insurance if you’re selling a product that has not been tested or regulated by the government. This might seem like a no-brainer, but manufacturers aren’t always forthcoming about the condition of their products. If a product causes an injury or illness, you have the right to demand compensation from the manufacturer. Without insurance protection, you could be forced to pay thousands of dollars in a lawsuit against you or your company.
Fourth, product liability insurance is important even if you’ve only ordered a small amount of a particular item. Even if you haven’t heard of the recall or that the product has been recalled, you still need coverage for things like damage or injury to property caused by the product. This is especially true if you purchased the product online and used a credit card to make your purchase.
Finally, don’t overlook product liability insurance when you’re working with small businesses or home businesses. While you may not have huge product liability problems now, you never know what will happen down the road. The same is true for your customers. You never know when you might accidentally poison them or give them an unsafe product.
It’s also smart to consider whether you need product liability insurance for your personal use or business use. Sometimes, you can purchase the protection that you need without having to pay for professional liability insurance. For instance, if you manufacture and sell your own product, there’s almost no reason to buy the additional coverage that professional liability insurance would provide. However, if you’re a business that sells or services products to the general public, it can be smart to purchase this coverage so that you don’t end up in court over a product that you yourself have manufactured or sold.
When it comes to purchasing product liability insurance, it’s important to talk to several different agents to see who offers the best deals and what kind of policy is right for you. Remember, however, that the premiums associated with these policies can vary depending on who you speak to. Also, keep in mind that there are limits to coverage as well. Don’t assume that your product liability insurance will cover everything. Speak to an agent to find out exactly what you’re covered for and what the exceptions are.