After research, I discovered quickly what product liability insurance is it is a protective cover that prevents manufacturers and sellers from prosecution, due to damages caused by the use of a product.
In the certain event that the manufacturer or distributor or merchant that sold the product is sued, the insurance handles the payment of the amount awarded by the courts and so averting financial loss to the defendant. So the
products liability insurance is considered a necessity for just about any type of business engaged in the task of manufacturing.
But still, there are provisions and limitations that may apply to just about any kind of product liability insurance. Such as small business product liability insurance will include coverage that is similar to that extended to those of large corporations, although the amount of coverage that the smaller business can receive is usually significantly less.
We must still consider that there are a few variances that are based on the industry type and the amount of risk involved in the manufacturing of the product. For example, food product liability insurance is likely to be more comprehensive than business product liability insurance offered to companies that produce bedding or fabric.
So, a product is anything which is sold or given away. The product should be ‘fit for purpose‘ meaning it is safely serving its purpose for being in existence. If you sell the product way downstream in a corner store, you may be sued first for a variety of reasons, one being you are the closest to the problem of that individual.
Your company’s name is on the product or your job is maintain or repair that product, some reasons that might put you in the bullseye of a lawsuit. You are not sure who made the product or this manufacturer is no longer in business. These are two other reasons that could make you liable.
You may want to prove that the products were no good when you received them or that you gave the customers ample warning as a defense. When running a business you have more to worry about, than customers falling in your store.
You should get product liability insurance in the event of something going wrong with a product. Just another expense of doing business. Premiums will vary on your insurance as they usually do depend on a variety of factors.