Anybody who is in the business of buying and selling consumer products will know that at some point, a defective product may be sold and bought, and eventually, cause damage to persons or even to data causing a product liability problem.
Due to the angst or resentment that a client feels due to this event, he or she may file a lawsuit based on the product. To protect against this occurrence, the business owner can take out a product liability insurance policy to help protect the business and business owner.
Damages may be claimed for the product defect which may be beyond the capability of the business owner to pay.
To start with, the product defect may not have been the seller’s fault. However, clients often believe that the one from whom they got the product should pay.
As a business owner, having a product liability insurance policy will allow you to remain focused on running your business without having to worry about the financial consequences of a product liability claim. Another point worth noting is the increasing number of product liability claims and lawsuits that are being filed.
With greater exposure and awareness we can expect the number of such claims to increase in the future. Keeping these facts in mind, business owners should seriously consider obtaining product liability insurance as a means of protecting their business from the financial ravishes of a product liability claim.
There are many ways a company can be financially compromised due to liability.
One of the most damaging is from lawsuits resulting from the use or misuse of their goods or services, resulting in damage to people or property. It’s critically important to protect your assets by obtaining product liability insurance.
At any point in the chain from the time your product leaves the factory until it’s received by the buyer, you can be held liable for property damage or injury to persons resulting from the use of your product.
The results stemming from a lawsuit can affect your company dramatically. The relatively inexpensive coverage of product liability insurance is well worth the investment.