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 a customer in any way, they can sue your business, leading to costly legal fees and settlements that can easily reach six figures. That’s why, to protect against claims and ensure the longevity of your business, you need product liability insurance.
Here are 4 ways that product liability insurance can benefit your business:
Coverage for manufacturing or production flaws
One of the key features of product liability insurance is its coverage for manufacturing or production flaws that cause unsafe defects in the product.
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.
Response for packaging and warning issues
In the event that you fail to provide adequate defect warnings or instructions for using the product, your company can be sued. These claims arise when products are not properly labelled or have warnings that are bit explanatory enough to reduce consumer risks while using the product. Product liability insurance helps organizations prepare for and litigate these types of claims.
Supplemental commercial general liability (CGL) coverage
Generally, these is limited product liability protection under a CGL policy, yet it may not be enough coverage to adequately protect your business. Product liability policies work alongside CGL coverage, providing against losses caused by malfunctions or defects in your products.
Find Out More:
While you may do everything in your power to ensure your products are safe, mishaps can still occur without warning. Having proper product liability insurance policies in place can help save your business from losses that occur as a result of these mishaps.
Download a copy of our “Benefits of Product Liability Insurance” guide to see how these policies can support and protect your business: