Your customers expect you to have safe and reliable products, and failing to meet these expectations can lead to huge financial losses. If one of your products harms the customer in any way, they can sue your business leading to costly legal fees and settlements. These costs can easily reach six figures.
While you may do everything in your power to ensure that your products are safe, mishaps and mistakes do end up happening on the production line. That’s why to protect against claims and ensure the longevity of your business, you need product liability insurance.
Product Liability Insurance. A must.
Here are four benefits to having this coverage.
- Benefit one, coverage for manufacturing and production flaws. One of the key features of product liability insurance is its coverage for manufacturing or production flaws that can cause unsafe defects in your products.
- Benefit number two, protection against design defects. Even after product testing and trial runs, potentially dangerous defects can still appear long after production. Product liability insurance can provide coverage for design errors that make goods unsafe for use by the public.
- Benefit number three, is response for packaging and warning issues. In the event that you failed to provide adequate defect warnings or instructions for using the product, your company can be sued. These claims arise when products are not properly labeled or have warnings are not explanatory enough to reduce consumer risks while using the product. Product liability insurance helps organizations prepare for and litigate for these types of claims.
- Benefit number four is supplement to a commercial general liability coverage. Generally speaking, there’s limited product liability coverage within a commercial general liability policy, so limited that it may not be enough to adequately protect your business. Product liability coverage works alongside a CGL, providing protection against losses caused by malfunctions or defects in your products.
Product liability is a complex exposure, and managing your risk can be a major undertaking, even if you have all the right resources. So in order to supplement your risk management strategies and address specific exposures, give us a call and we’ll help you move your business from danger to a safe place.