It’s possible that you’ve never heard of product liability insurance before, but we’re about to change that for you. A subset of business insurance, product liability insurance deals with products your company makes available to the general public. While this can be for either use or for consumption, it includes many things—from designs to specific component.
On top of the goods themselves, product liability insurance can also involve many steps of the distribution process, including assembly, manufacturing, distribution and even the retailer. While a policy of this kind can provides coverage against claims of resulting damage caused by the property, it also protects against things like defects. Problems of this kind can really affect your company, altering the way the public views you and interacts with your business. Product liability insurance cuts costs that the company infers from this kind of conflict, but that doesn’t end with court fees. It can also provide money to make up for lost business due to whatever incident occurred so make sure to add it on to your business coverage.
Most of these policies protect against very specific things. These things include a design defects, production flaws and defective instructions. When you’re creating a product, there is never a way to completely remove all risk of these things happening, but having the proper insurance can definitely help should such a matter arise.
If your company produces any kind of product, you need product liability insurance.
It can potentially save your business—both financially and your reputation. Product liability insurance should be a part of any risk management strategy as it’s always better to be safe than sorry. One thing to keep in mind is that your insurance should last as long as the product is in use. Even if you stop producing it, if people are using it, there is cause for concern should something happen.
The best way to find out more about product liability insurance is to consult an insurance agent who can further discuss your options. To learn more about this specific type of insurance, schedule a consultation with Peter Green by calling (714) 258-2800 or get a free quote online today.