Product Liability Insurance Provides Protection From The Unforeseen.
Product liability insurance covers property-damage and/or personal-injury claims that stem from the use of a given product. What follows are a few instances where it can prove especially valuable.
Even though you have attached warning labels in plain sight for consumers to understand how not to use your product, they may not be sufficient. Product liability insurance provides protection from unforeseen circumstances, where the product was used in an unexpected manner, or where a previously unidentifiable defect arises.
Insufficient or missing directions.
If instructions were inadequate or missing altogether, the only sufficient protection from the claims that will result is commercial general liability insurance, which includes a form of product liability insurance. It’s often referred to as business liability insurance, commercial insurance, or asset protection insurance, because it does exactly that, protects business assets and its owner’s interests from financial ruin to the limits of the policy.
Inadequate quality control.
Liability insurance for small business, which also usually includes a form product liability insurance, can be the difference between an active, revenue-generating business and bankruptcy. Even if your company only created a part for the product, not the product itself, it could be held liable in a claim. The premiums charged are based, in part, on your role in the process.