All businesses that deal with any type of product that is going to a consumer need to be covered by product liability insurance today.
Product liability insurance protects the business from the chance of a lawsuit if a product causes damages or injuries after it is purchased.
Many people are running on misconceptions about their need to protect themselves from the products that their businesses are dealing with. Sadly, all links in a products lifespan chain between manufacturing and consumer possession can be sued if a product does not perform in a safe and healthy manner.
Small businesses are often shocked when a product liability lawsuit results in their own going-out-of-business sales.
Some businesses tend to believe that they are too small to need product liability insurance or that if they did not personally make the faulty product that their business activity of endorsing the product for sale somehow does not count.
The manufacturing process, the retail supply sources, and the retailers can all become victims of a product liability lawsuit that requires product liability insurance to cover.
As an example of potential problems, stores selling an open box that is missing a written product warning, or antique stores selling unsafe older items are both in the line-of-fire.
Many people agree that our society has gone too far on what we allow as lawsuits associated with faulty products on the market, but this does not negate the fact that businesses need some form of product liability insurance today because the laws do allow lawsuits to be filed over labeling or products that appear to be fine to almost all people.
America is known as the birthplace of product liability because this is the country that has the most problems with faulty products hitting our court system, but it is not just America that has problems that require businesses to carry some form of product liability insurance. In America, our problems are just magnified by our fascination with product recalls in the news.
For each product recall that is announced, there are manufacturers, retail suppliers, and retail sales businesses being advised to make a public announcement in order to stave off a product liability insurance claim.
For those who do not hear about the recall, there is a higher need to have insurance in place because some consumers go looking for a reason to file a copycat lawsuit in order to profit from that businesses product liability insurance financially.