Product liability insurance is an insurance that helps protect your business against claims and lawsuits arising from injuries that may result from using your products.
If you are a businessman or woman, the interest in harnessing success with the least risk is too real and apparent.
As a business owner, you naturally want your company to succeed. You also would like to guard against catastrophic risks, including threats to the well-being of consumers who purchase your products.
This article will discuss what product liability insurance is and what coverage it provides to businesses.
What is Product Liability Insurance?
Product liability insurance is a form of commercial general liability insurance that protects businesses from claims resulting from harm caused by products. This type of insurance is vital for companies that make and sell products and those that provide services.
There are two main types of product liability claims: manufacturing defects and marketing defects. Manufacturing defects are when something goes wrong during the production process and results in injury or death. Marketing defects are when information about the product is not properly disclosed to the public, causing injury or death.
Product liability claims can be costly to defend against and may result in product recalls, which can also be expensive. To avoid these situations, consider purchasing product liability insurance for your business.
What Is the Scope of Product Liability Insurance?
Product liability insurance protects you against claims of negligence resulting from defective products and services. This policy will protect your business against lawsuits and claims related to injuries or property damage caused by your products or services.
Examples of potential claims include:
Injury: Product liability insurance will cover the costs of injuries caused by your products or services. If you are found to be negligent in the creation, manufacturing, or sale of a product that results in harm to someone else, then this type of coverage will pay for any medical expenses incurred as a result.
Property Damage: If your product or service causes property damage, this type of coverage will pay for repairs or replacement of damaged items. This can include property damage caused during the use of a product you manufacture or sell and any property damage caused by an employee who works on your behalf (such as a contractor).
Illness: If your product or service causes illness, this type of coverage will pay for any medical expenses incurred. It may also cover any legal fees associated with defending yourself against personal injury claims.
Wrongful Death: If your product or service causes a wrongful death, this type of coverage will pay for any financial losses suffered by the decedent’s family (such as funeral costs). This can include wrongful death caused during the use of a product you manufacture or sell.
Conclusion
Product liability insurance covers the cost of defending you against lawsuits related to your products. It also covers any damages awarded in court, including legal fees and settlement costs. You must have the right coverage in place to help you avoid financial burdens related to product liability lawsuits.
Get your policy ready with The Tabb Insurance Agency to acquire the best insurance coverage in Conyers, GA to help you avoid financial burdens. For more information about our business insurance services, contact us today.