Business owners don’t usually consider the really bad things that could potentially happen in the life of their business, but the truth is that business owners are constantly facing the risk of potentially devastating situations coming up that could harm their business. The most common form of this type of situation is a lawsuit.
Businesses can face lawsuits for many different reasons like libel, slander, false advertising, injury, and defective products.
Now business product liability insurance is designed to protect businesses against lawsuits and claims of injury or damage to property arising from the use of products that have defects. If, for example, someone is using a product your business sold, and a defect in the product causes an injury or damages some property, your business could be sued.
Another example is if the product wasn’t defective, but the manner in which it was used caused an injury or damage, and there were no warning labels present to caution against the use of the product in that way.
It’s extremely critical to carry product liability insurance for any business that sells, distributes, or is otherwise involved in the manufacturing to sale process of a product.
Product Liability Insurance – Do You Need It?
Every day, thousands of products are sold to consumers around the world. The companies who handle these products – from manufacturers to exporters to suppliers – need to protect themselves with product liability insurance . Why?
Because if there are any claims of injury or damage by the consumer, the company will be liable.
Claims can arise from a variety of defects including design, packaging, or warranties. Even with stringent quality and safety checks carried out by the manufacturer, goods can slip through the supply chain with faulty components or lack of warning labels.
As well as bodily injury to a consumer, claims can also arise from the misuse of goods. Sometimes it is the consumer themselves that finds something unsafe about the product after purchase.
So, do you need product liability insurance?
If your company has anything to do with products, the answer is a resounding yes. Consumers are entitled to claim from anyone in the supply chain, not just the manufacturer, and any company found to be liable could be sued for thousands of dollars.
As well as peace of mind, it could be the difference between your company surviving or financial disaster in the event of a claim.