Product Liability

Your in the business of manufacturing products, and your business is responsible for making these products correctly. What happens if there is an error in production? Responsibility for a product defect that causes injury may affect all sellers of the product who are in the distribution chain. Is your business properly insured to respond at the time of a lawsuit? If not, let The Bunker help you with a Product Liability policy.


What is Product Liability Insurance?


It provides protection against bodily injury and property damage losses arising out of some defect in the product you’ve sold, manufactured, or distributed. It can also provide coverage for claims arising from damages due to providing inadequate instruction for the use of the product or a failure to warn on your product label.


Why Product Liability Insurance?


Depending on the outcome of the case, money may be awarded to the party that filed the claim for compensatory loss (including medical costs, economic damages, and attorney fees) or punitive damages. Are you financially prepared to finance such risk? In some cases, an organization can be out of business because of the awarded damages. By getting a Product Liability policy, you will have peace of mind that your business will be able to survive if this were to happen to you.


The law is in favor of the consumer


In this extremely litigious world we live in it’s necessary to note that the Product Liability Law is based on Strict Product Laws. This law states that it has to be proven that your product was defective, not that there was negligence during the manufacturing process. Proving a product is defective is not as challenging as proving negligence, therefore, your company is usually at a disadvantage.


Does your business need Product Liability?


Product liability coverage can vary greatly in cost depending the actual product, volume, and your businesses role in the production process. Ultimately, the best way to keep your insurance affordable is to manage and minimize your risk continuously.


Ask yourself the following questions:

  •        Do you have a procedure for thorough testing?
  •        Do you have a quality assurance program?
  •        Do you have an effective record-keeping process in place?

If you answer “no” to any of the above questions, a thorough risk analysis can help you find where to start putting procedures in place to minimize the cost of insurance and most importantly the cost or risk.

Unfortunately, product liability is a risk your business cannot avoid. But the right coverage can help protect your company assets and its reputation. Transfer the threat of financial loss with insurance and give yourself the opportunity to plan for more products in the future. Give The Bunker a call so we can help you get protected!

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