3 Situations Invoking the Need for Small Business Product Liability Litigation Protection

No one ever thinks of small business general liability insurance as a fascinating subject, but the truth is that there are so many benefits to consider. Business owners most commonly facing litigation issues due to a lawsuit claim need to be protected. Legal claims can happen for many reasons such as libel, slander, and even false advertising.

Depending on the type of business you have, you may need a different type of insurance coverage.

Another type of insurance policy called Small Business Product Liability Insurance is designed to protect manufacturers, distributors and importers against lawsuits and claim of injury or damage to property arising from the use of product that have defects.

If, for example, the product was not defective but the manner in which it was used cause injury or damaged, and there were no warning label present to caution against the use of the product in that way.

Here are three situations that can come up, that might invoke a lawsuit and business would find protection from using their product liability insurance:

  1. One of the most common claims about product liability is that a product your business manufactured sold, refurbished, distributed cause damage or injury, liability for this product can come back to you.
  2. Another claim about product liability is that a product your business manufactured sold, refurbished, distributed had a flaw in that design of a product cause damage or injury because of that flaw. Even if you were not manufactured the product, you can be held responsible for the problems occurred.
  3. If a person uses the product in a wrong way, and warnings were not included cautioning against that use, you can be held liable for any damages that result. Product liability is a real benefit to a business to get a product liability insurance. Sometimes general liabilities also cover some product liability, but other times business has to specifically get a product liability insurance.