What type of coverage do you need?

Product Liability

In a consumer-driven society, the successful launch of a product can be a big break for your retail company. But, it’s your responsibility to ensure that the product your company sells is safe for consumer use. If your product causes an injury, you could be held responsible. If someone can prove that you knew about a problem and did nothing to fix it, you could end up in big trouble. So, how do you deal with a situation like that?

Purchase product liability insurance from an Insurance Station agent. Our agents understand the need for policy personalization. We can help find a policy that fits your unique needs. Member agents can compare coverage types and quotes to ensure that your insurance needs match your budget concerns. If you rely on product sales to drive your business, contact ust to get product liability insurance.

Three Potential Product Claims

When you produce a certain kind of product, you face three specific types of liability issues:
• Manufacturing or production flaws: If a part of your production process has created an unsafe product, you can be held responsible.
• Design defects: If the actual design of your product can cause harm to consumers, you will be held responsible for any damages.
• Defective warnings or instructions: If your product doesn’t have the right warning labels or clear instructions and a consumer is injured, you might be held responsible.

What Does Product Liability Insurance Cover?

If your product causes any form of injury or damage, business product liability insurance will cover compensation and possible legal fees if you’re taken to court. Of course, those who accuse you of producing defective products must first prove that the item in question is really defective. Product liability laws state that those who claim a product caused injury or damage must meet the following criteria before they can make a claim against your product liability insurance company:
• The claimant suffered an injury or other form of loss. If the individual making the claim can’t prove that the product actually caused any harm, there is likely not a strong case and you won't face charges.
• The product was defective. If the claimant can’t prove that the product has a defect which caused the loss, it may lead to further questioning of the injury situation.
• The product’s defect was solely responsible for the injury. If your product is correctly labeled with safety instructions and the user fails to adhere to them, you likely can’t be sued for a defective product.
• The product was being used as intended. If the claimant isn’t using the product as it was intended, the likelihood that the claim will go forward is low.

Who Needs Product Liability Insurance?

If you manufacture a product, you are a prime candidate for product liability insurance. But, there are other types of businesses that can benefit from this type of insurance. If you are responsible for repairing a product or making any kind of change to it, you could be held responsible for injuries and damages that consumers sustain after the repair. If you are responsible for transporting the product, you might be held responsible for injuries or damages to consumers, but it must be proven that damages occurred during the physical transportation process.

Before you purchase product liability insurance, read the fine print. Some policies will have measures of quality control, and if you don’t adhere to those, claims against you may not be covered. Also, as with any other insurance policy, exclusions exist. Make sure they don’t specifically apply to your business or product. When you work with an Insurance Station agent, you'll be able to get the coverage you need, and you can be sure that you have no gaps in coverage that could cause a costly loss.

We have the ability to access multiple insurance companies and rates to find the right coverage for your business and product. Unlike “captive insurance agents,” our agents can compare a variety of policies. Even if you follow all the rules, product liability insurance is a wise investment.

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