How To Find The Right Product Liability Insurance Policy

Product liability insurance can be included among the concerns and needs that all businesses, small and large, have when it comes to working with products.

This type of policy is a necessity when it comes to protecting the financial future and the hard-earned profits of such businesses.

If you are searching for a company that can offer assistance in securing appropriate product liability insurance for your business, you need to be aware of a few things.

Keep in mind that there are various types of liability you can face, and you need a policy that best fits your business.

You may also think about consulting a lawyer, who can provide professional legal advice that would best suit your unique needs. Consulting a lawyer or an insurance broker may offer you more solutions and credible options, as compared to searching for answers on your own.

Once you are done with determining the type of the insurance policy you want to have, you must select the type of plan that best suits you. Every insurance policy offers you numerous options with varying benefits.

It’s important to choose whichever best fits your situation.

It is highly recommended that you take your time to do some preliminary research about the available options. Taking professional advice becomes highly significant, here, because this is the position where you desire to minimize the risks.

The basic purpose of product liability insurance is to provide protection to a company from losing its assets in a lawsuit due to accidental circumstances. The company involved usually extends services in distribution, manufacture, and sales of a product. Now, although product liability insurance is to protect your business, yet, you must gather all the required information before proceeding with it.

When you are in business, there are several situations that may call for a need to get product liability insurance. There are circumstances that may make a company more vulnerable to unwanted damage due to lawsuits. Products may have to face some defects during the manufacturing process; however, this is very unlikely to be intentional. Moreover, sometimes, carelessness may also result in damage infliction on the products.

Now, if a damaged product lands in the hands of a customer, the company may have to bear further consequences. The person receiving that damaged product may assert that the company has been responsible for that, and this may initiate trouble for the company. There are different types of liabilities, such as, those that result from damage of property or those that arise due to personal injury or neglect on part of the company. Therefore, companies must go for product liability insurance because there is a lot of risk in the present-day business market.

There are several general insurance plans that may offer limited coverage for the companies; however, they are not as useful as the holistic product liability insurance. Therefore, having product liability insurance may actually play the role of a savior.

Do Product Wholesalers Really Need Product Liability Insurance?

In the world of insurance, product liability insurance has a significant role to play; however, without having an in-depth knowledge of this insurance type you can hardly avail its benefits. It is a common misperception that the product liability insurance is beneficial to product manufacturers only. As a matter of fact,

product liability insurance is one of the types of insurance policy that is meant for the whole retail business.

Therefore, any organization that has been in contact with a product may avail the benefits of this insurance policy. Let’s take an example of a Chinese organization that manufactures a certain product for Company A; the company A will give the product its brand name and pass it on to a wholesaler. Now, the wholesaler would have to tackle the hassles of retailer distribution. If the wholesaler is getting 500 product pieces, he may pass on 300 of these pieces to the retailers. The retailers sell these products to the buyers. Now, if the product malfunctions after a buyer purchase it, the whole supply chain or dealer links get affected.

This, therefore, clarifies, that the product liability insurance is for the entire supply chain or the dealers linked to the product. As an product wholesaler, this insurance will offer you protection from certain damage due to the supplied products. This insurance type covers the legal aspect, as well as, financial aspect. However, the retailers and manufacturers also share some of the financial aspects or obligations, yet; it’s a lot beneficial that every linked personal in the business chain has its required protection.

Most business owners were not aware that product liability insurance policies are a simple matter of protecting their business when claims arise due to defective products.

Imagine this… you give your daughter a shiny new bicycle and are teaching her how to ride it. You have the training wheels on, and she is excited to try it by herself, without your help.

So you let go of the bike, and off she goes… only to have one of the training wheels malfunction and you watch as she topples over unexpectedly. Fortunately, your daughter probably will not be hurt significantly, but product malfunctions such as these happen often and sometimes can cause great damage to property or bodily injury. When this type of damage or injury occurs, the user of the product, as well as anyone standing nearby who might have been injured, can sue the parties responsible for that damage or injury.

Typically, one would think that would be the manufacturer of the product; however, the entire chain of distribution of the product can be held responsible, from the manufacturer to the retailer.

The products liability insurance policy protects these businesses from financial ruin.

These insurance policies allow them to pay legal expenses arising from claims related to product defects.

Product Liability Insurance Coverage: What Should You Look For?

Product liability is one of the most common nightmares of distributors, sellers, lease-granters, and manufacturers of products. These days, there is hardly any company that has been able to escape product liability lawsuits.

These lawsuits that involve product liability may drag not only the finances of your company downhill, but they also jeopardize the reputation of your company! So, it is always better to avoid such lawsuits and take extra caution to combat or tackle them well.

To prepare yourself completely, you need to have product liability insurance.

Without having the right amount of information and insight into the types of problems that can come up, however, you may end up making flawed decisions. So, let’s analyze the types of liabilities in more detail now. Most of you must have been aware of the two basic categories or types of liabilities: ‘fault’ and ‘strict’. Here, in this article, we are going to discuss both types in more detail.

The fault-liability type is more about when a customer or buyer suffers injury because of the damage inflicted by the flawed product. Moreover, here the customer brings up the objection that the product has been flawed, and company omitted or misrepresented the information before selling it. Here, the distributor can be held responsible for fraud or intentional misrepresentation.

Moreover, if the product has been assembled wrongly or tested inappropriately or failed due to lack of care, the distributor can be charged with negligence. The second type of product liability is more complex and involves situations that do not include any faults. In this liability type, the charge arises due to inappropriate instructions.

Product liability insurance can help you avoid all the undesirable conditions due to liability issues.

When you want to cover yourself with product liability insurance for small business, you will need to check with your agent that provides your business insurance coverage to see if it is already included in your policy. You need to also be aware of the exact nature of that insurance as to what is covered. When you purchase, give your agent the most accurate information that you can about what kind of product your company makes and how much is produced during manufacturing.

This will affect the price of your employer’s liability coverage, but being honest avoids problems later on if there is a suit and it keeps you from being penalized because you did not purchase enough coverage.

If you have narrowed it down to a few insurers, make sure that you compare quotes and are aware of each company’s reputation. This can be critical when you are faced with court action and need a solid insurance company behind you.

If you follow these initial steps, you will have a great start on being properly protected.

Should a Business Owner Purchase General Liability Insurance?

Entrepreneurs looking to start a business today have many risks they face in the area of liability. Not only do business owners have to pay careful attention to their startup costs, their sales and marketing, their payroll, the quality of the products and services they provide, and their customer service; they also have to be aware of the ever-present risk of being held

responsible or being sued for injury or property damage related to their products or premises.

Depending on the business model, a business owner will have to choose the type of liability policy should be purchased. A product liability insurance policy will cover certain types of lawsuits related to defective products and injuries or damage that their use caused; a Professional Indemnity Policy will cover omissions and errors that occur during the execution of a service agreement.

General liability covers a broad spectrum of liability, including product liability. With general liability, a business would be protected against claims of injury or damage arising from the premises or operations of the business; any associated medical expenses from such injuries; damage to a landlord’s property occupied by the business; lawsuits coming from claims of libel, slander, or other personal damage, and product liability, which includes claims and lawsuits alleging damage or injury while using a defective product.

Overall, general liability insurance is the best choice for most businesses, since it can usually be purchased for only a slight increase in price than other independent policies.

The Products Liability Insurance division of SADLER and Company, Inc. offers hassle-free quotes on product liability insurance coverage for companies and high-risk product manufacturers, importers, distributors and product resellers.

Our insurance offerings allow you to add Product Liability or Product Recall Insurance to your existing General Liability policy to help ensure complete legal liability coverage.

The policies protect you and your business from damages resulting from manufacturing design defects as well as misinformation in marketing or on product labels that could cause you to be held liable for property damages, injury or even death caused by the product manufactured, distributed or sold.

SADLER and Company, Inc. Services include Liability Insurance Coverage for Manufacturing Businesses, Business Owner Property Insurance Coverage, Product Manufacturers Business Liability Insurance, Workers Compensation Insurance.

Why Manufacturer and Distributors Need Product Liability Insurance

From the time the product is manufactured in a factory, wherever that factory is located, to the time you purchase it at your local store and afterward product liability comes into play.

Companies and businesses need to have this insurance, so if sued they still can remain in business, with higher insurance rates.

The local businessman especially needs this insurance because if he is sued, unlike the giant corporation, he will not have a battery of attorneys at his disposal. He could lose his home in the lawsuit.

A manufacturing defect could be lead paint on toys from the factory. The lead is dangerous and this is a manufacturing defect. The product might be so poorly constructed that it breaks immediately. The factory and manufacturer will be sued and is in need of liability insurance. The retailer can be sued simultaneously.

There are design defects. You might construct something of the highest quality materials yet it is not designed to work. Firestone tires, many years back falls into this category. A plane might be made to the highest standards and materials. Yet, the wiring always catches fire, because it was designed to be placed in a certain area. This is another design flaw.

The space shuttle losing its tiles must be a design flaw. Failure to warn is simpler. A well-manufactured motorcycle has no manufacturing defect and no design flaw, but the manufacturer left off the sticker warning that this could be a dangerous machine. This is a failure to warn.

People will sue the manufacturer down to the retail level for any of the above because they were all involved in selling the item.

All need to carry liability insurance.

Unrelated to the above can be opening a soda in the store and a piece of the can or bottle hits the person opening it or someone standing five feet away. You must have liability insurance even for these contingencies. The flaws might not show up for quite some time after the product is purchased. Product liability insurance covers a great distance in miles and a long time span to protect whoever is purchasing the insurance.

Discover How Product Liability Insurance Coverage Can Protect Your Small Business from Costly Defect Claims and Lawsuits

Owning your own small business can be a very rewarding and satisfying accomplishment. It can also be extremely risky if you are providing a product to the public.

Many times due to no fault of our own, someone may be injured by one of the products you manufactured or sold to a distributor or consumer.

Just one lawsuit can ruin the business, that took you many years to grow and perfect.

Anytime you are selling a product to another business or to the public, you should consider getting product liability insurance coverage, to protect you and your business from what could end up a very costly legal battle or defect lawsuit.

Product liability insurance coverage is an insurance policy that protects product companies from costly defect claims that originate from the sale of produce, medicine and a variety of other products that are sold to the general public.

This low-cost liability insurance for manufacturers, wholesalers, distributors and product importers will cover the seller’s liability for injuries caused to an innocent individual, due to a defective manufacture or lack or proper warning labels.

When it comes to product liability claims, they can originate from manufacturing defects or some process that caused the item to be flawed during production or even negligence. An example could be a chemical that is present in clothing that causes injury to someone. Another type of claim would be due to an unsafe design of a product such as a firearm. This type of claim could include an unsafe part that has been designed for your car. The part may fail, and cause injury to you and your passengers.

Other types of claims include items that do not have adequate labeling or warnings. A popular example of this would be the lawsuit against a popular food chain, that occurred as a result of hot coffee not being labeled appropriately.

Although, as grown-ups, we know that coffee is hot, as responsible owners of a business, we have to provide adequate labels and warnings to protect ourselves should an accident occur. As a business owner, you must carry product recall coverage, to ensure your business is not lost due to any of these type of claims.

If you own your own company, it has never been more important to obtain the product liability coverage that will keep your business safe from costly lawsuits.

Call today for a product insurance quote and find out how you can potentially purchase this valuable insurance. Besides our homes and families, our businesses are our largest assets. We have to make sure they are protected at all times because without our business we can provide for our family.

Find out what low-cost liability insurance can do for your company and how easy it is to protect your investments. Visit https://www.products-liability-insurance.com/ or call toll free 800-622-7370 to get liability advice, quotes or coverage today.

The Benefit of Insuring Your Manufacturing Business with Product Liability Insurance

If you are a product manufacturer, you are responsible for all damages (personal or property) that may be caused by the goods you sell, manufacture or import. Regardless of whether the damage was caused to a client or to a third party, you will be liable.

For example, the craftsman who creates jewelry is liable if the jewelry contains metals that cause allergies, and the restaurant is responsible if food items lead to sickness.

A product liability insurance policy can protect you due to any negligence.

The failure is usually caused by a “latent defect” that prevents the object from running correctly. This defect may be due to a manufacturing problem or design, improper assembly, or there may be a defect in the material itself, etc.

In addition; you are also responsible for mistakes made during delivery, storage, conservation (e.g. rupture of the cold chain), and even the facility for certain goods, as well as errors in the labeling.

You will be considered liable for mistakes in the user manual too. You should request a product liability insurance quote right away before a defective product claim is made.

The product liability insurance policy compensates victims of all their injuries caused by the goods you sell. It plays both in favor of customers of the company and the third parties because it is an assurance of tort and contract. However, there are a number of exceptions.

The product liability insurance does not apply in the case of serious misconduct or course for negligence caused deliberately. In addition, the contracts “core” excludes damage caused by new products in the market. In this case, you must request an extension of warranty.

The damage caused by hidden defects can be considerable. Because of an affected product, thousands of copies may not be sold. Nevertheless, the insurance policy will compensate the victims instead of the company. To limit these benefits, most product liability insurance contracts include a “globalization” clause.

With this clause, the insurer considers that there is a single claim from the time when many claims come from the same error.

In this case, it pays a total capped compensation. The contractor receives this limited benefit and should, in turn, compensate the victims in relation to actual damages they suffered. Clearly, this clause limits the warranty of product liability insurance.

The company can be held liable for damage to products – even after the sale is made.

This risk will be covered by an extended warranty for product liability insurance or specific “after delivery” insurance. The manufacturer-seller may be liable for damage that would be caused by its products.

The buyer simply demonstrates the existence of a hidden defect of the product in question for the company that has been held liable.

This heavy liability can be assured. A warranty of the product liability insurance will be extended based on:

– The inherent vice of the product (e.g. a manufacturing defect that makes the use hazardous);

– The insufficient or erroneous recommendations (e.g. a manufacturer does not indicate any precautions) and packing mistakes.

Overall, you have to think about consumer protection and product liability insurance can be of great help to you in defense to these type of liability claims.