The Benefits of Product Liability Insurance

Before we talk about the benefits of your business having a product liability insurance policy, let’s take a look at what product liability is.

The Basics of Product Liability

Product liability is the legal responsibility of a manufacturer or seller of a product for any damages or injuries caused by that product.

In order to be held liable, the manufacturer or seller must have been negligent in the design, manufacture, or sale of the product.

Negligence can include failing to warn consumers about known risks associated with a product, or making false claims about a product’s safety.

Common Types of Product Liability Claims

There are three common types of product liability claims: design defects, manufacturing defects, and marketing defects. Design defects occur when there is a problem with the design of a product that makes it unsafe for consumers.

Manufacturing defects occur when there is a problem with the way a product is manufactured, such as using defective parts or failing to follow proper assembly procedures.

Marketing defects occur when there is a problem with the way a product is marketed, such as making false claims about the product’s safety or failing to warn consumers about known risks associated with the product.

Who Can Be Held Liable?

Manufacturers, distributors, and retailers can all be held liable for damages caused by their products. In some cases, more than one party may be held liable for damages caused by a defective product.

For example, if a manufacturer sells a defective car to a dealership, both the manufacturer and the dealership can be held liable for any injuries caused by the car.

How Do I File A Claim?

If you have been injured by a defective product, you may be able to file a claim against the manufacturer or seller of the product.

In order to do so, you will need to prove that the defect in the product was the cause of your injury.

You will also need to show that the manufacturer or seller was aware of the defect and failed to take steps to remedy it.

An experienced personal injury attorney can help you gather evidence and build your case.

What is product liability insurance?

Product liability insurance is a type of insurance that protects businesses from claims arising from injuries or damage caused by their products.

This type of insurance can help to protect businesses from lawsuits, which can be very costly.

Product liability insurance is not required by law, but it is highly recommended for businesses that manufacture or sell products.

Who needs product liability insurance?

Businesses that manufacture, sell, or distribute products should consider purchasing product liability insurance.

This type of insurance can be particularly important for businesses that sell products that could be considered dangerous, such as food, drugs, and cosmetics.

Product liability insurance can help protect a business from lawsuits that may arise from injuries or damages caused by its products.

What does product liability insurance cover?

Product liability insurance can cover a variety of claims, including personal injury claims, property damage claims, and product defect claims.

This type of insurance can also help to cover the costs of legal defense in the event that a business is sued for damages caused by its products.

How much does product liability insurance cost?

The cost of product liability insurance will vary depending on a number of factors, including the type of business, the products sold, and the amount of coverage purchased, and if product recall risks are higher.

Businesses should work with an insurance agent to determine how much coverage they need and how much it will cost.

What are some common exclusions from product liability policies?

Most product liability policies will exclude certain types of risks, such as intentional acts or criminal acts.

Additionally, many policies will exclude claims arising from defective products that were not manufactured by the insured business. It is important to read the policy carefully to understand what is and is not covered.

How can I get product liability insurance?

Product liability insurance can be purchased from most commercial insurers. Businesses should work with an qualified insurance agent that specializes in product liability insurance coverage to find a policy that meets their needs.

What Product Liability Coverage Could Mean to You and Your Company

Lawsuits affect many companies and can use a lot of valuable time and money. One way to battle these unnecessary costs is through product liability insurance.

Product liability insurance can help a company in many different situations that come up for most business of any significant size due to negligence or claims.

If your company creates and sells products with care then there should be some sort of assurance that the situations that arise due to negligence or ignorance won’t end up costing the company extra money and time due to risk of harm from a product defect.

When starting a business, an entrepreneur rarely thinks about everything that could go wrong. Usually, the new business owner is planning a future for the business, working on sales and advertising, and dreaming about their future success.

Unfortunately, sometimes that can be the very reason small businesses go under. The failure to plan for the negative scenarios at the beginning can be the critical mistake today, more than ever, our legal system protects innocent people by allowing them to sue for expenses related to damages and injury.

By getting general business liability insurance, product liability insurance, or professional indemnity insurance, a business owner prepares for these liability claims that can come up, and protects the business from financial collapse due to legal expenses and judgments.

People may not believe that lawsuits or disagreements will come up, but having product liability insurance allows people to live with a peace of mind that problems should be taken care of easily and without worry.

A disagreement over a product’s exact capabilities or if a person were to hurt themselves using the product wrongly should not turn into the major problem that they can be.

Product liability coverage will cover many areas that general insurance doesn’t and that you may feel that you already covered for.

So if the profits and success or your company is a concern than look into getting SADLER insurance for product liability as soon as possible.

Product Liability Insurance Offers Protection for Small Businesses

There is no question about it: If you make or distribute a product, you must have product business liability insurance. You may feel that it is unlikely that your product might every hurt someone or their property, and that there is no chance of a defect in your product.

However, product liability insurance protects you from an element you can’t control: how people use your product.

You can, in fact, be sued if someone is injured using your product in a way it was not intended if you did not warn against that specific usage in your packaging.

Take for example the “cat in the microwave” urban legend. This is a story in which a woman put her cat in the microwave in order to dry it off. The cat, of course, did not survive this. The story takes a wackier twist when she then sues the microwave company for not warning her that you should not use a microwave in this capacity; and she won! While this is a ridiculous tale, it is thought by many to be true, simply because that is exactly how product liability works. You simply cannot rely on the common sense of the general public.

So, Product liability insurance is an important insurance coverage component that should be considered by any small business planning to sell or manufacture products. Regardless of the type of products that are to be sold or manufactured, there is always the possibility of consumers being injured by the product or claiming that the product did not perform as advertised.

General liability insurance, which is a common form of business insurance that most businesses obtain, will generally cover some aspects of claims of property or personal injury from product use; however, this form of insurance does not offer the same level of coverage offered by specific product liability insurance policies.

Small business owners selling seemingly innocuous products often believe that they do not need to incur the additional expense of product liability insurance; however, if one defective product gets past their quality assurance efforts, or someone experiences property damage or personal injury from a product without a proper warning label, this one, individual lawsuit could be enough to shut a small business down.

Because of this, it is imperative that all small business owners consult with an insurance specialist to determine which forms of insurance coverage will safeguard their business and their livelihood, and should give special consideration to product liability insurance, which can protect them from the devastation of a lawsuit claiming property damage or personal injury from a product that they sell or manufacture.

Important Reasons for Businesses to Have Product Liability Insurance

People who own and operate a business are in the position to have a great level of responsibility and accountability. The organizations of the business relationship today puts the business at risk. Partnerships and sole proprietorship have personal liabilities. The protection is given to the property of these business’ in the event of a lawsuit. A lawsuit from a person receiving injury on the business property, for example.

There are three types of business liability insurance. They are general liability insurance, professional liability insurance and product liability. This insurance covers the damages from any lawsuit and associated costs.

Small, medium and large companies need to be protected in this manner, as well as new and old business to ensure their longevity.

The basic purpose of defective 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 this 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.

These types of liabilities, such as, those that result from damage to 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 rescuer.

Does Your Manufacturing Business Need Product Liability Coverage?

If your products cause harm to a person or damage to their possessions, you could be liable to pay for any recompense charges.

Product liability can cover those costs on your behalf, helping you to avoid unnecessary expenses.

You might not have manufactured faulty products; you can still be held responsible for any occurrence if you are the seller, and the product has your name on it. Therefore, your manufacturing business really needs product liability.

You must stick to the conditions as to quality control of products in order to be covered by your policy. The exclusions on your policy must be checked to ensure you have covered the best fits for your business. There are some products that actually invite more risks than others, ensure that the level of cover you have is the right one for your business.

The types of liability insurance you may need to consider include:

  • Public liability: This type of policy prevents you and your business against the monetary risk of being found liable to a third party for death or injury, damage of property or economic loss as a result of slackness.
  • Professional indemnity: This protects advice-based businesses from lawful action taken for losses incurred as a result of negligence; it provides insurance cover if your client suffers a loss.
  • Product liability: Cover against claims of goods causing death, injury, or damage is known as product liability. It covers you if any of these occurred to another business or person by the failure of your product or the product you are selling.

Liability Insurance is necessary to protect the small business owner from possible lawsuits. This insurance may be sold as part of larger insurance packages for business owners. You need to read the liability insurance carefully and any riders or disclaimers that may be added to your insurance policy. This is a general overview of what Liability Insurance covers and does not cover.

Liability Insurance covers injury or damage from the item sold by the business owner.

This item may have been faulty, designed poorly by the manufacturer, or lacked proper and needed warning labels.

Liability Insurance does not cover the following items:

Injury to a worker in your business, even if it is a faulty item or poor design from the manufacturer. Employees are not covered by Liability Insurance.

Damage to your business or vehicle by an item sold by the business. The small business’s fire insurance, car insurance or property insurance should be used to cover your business in this instance.

Recall items are not covered by product liability insurance. As the seller, it is your job as the expert of the products in your business to remove items that have been recalled. Insurance companies also offer withdrawal insurance to cover recalled items.

How Business Liability Insurance Works for Product Liability

If you operate a small business, you know how important it is to handle everything with importance and to offer the best in quality and service. But you also know that no matter how hard you try to provide the best, customers can still claim that you’re at fault in a situation (even if you’re not).

Nearly 80% of companies in the US are set up as a sole proprietorship or as a partnership. This kind of structure generally sets up a small business owner with a lot of risk both in the company and personally.

Business liability insurance covers your assets  both business and personnel  from damage through lawsuits.

In the case of a lawsuit filed for individual or property damage, this type of insurance covers legal fees and damages. Business liability is a big problem for most small businesses, because they don’t understand it, and they don’t really know the risk of not having it.

Having a general liability policy is the rule of thumb it provides protection against things across the board, such as accusations and lawsuits against you for false marketing to injury claims and damages to property. Many companies who invest in liability insurance choose only this type of policy.

If, however, a business is selling products, product liability insurance is key. A suit brought against a small business based on personal injury or property damage resulting from a defective product can easily put a business out for good

product liability insurance protects a business from that danger by covering the expenses in those situations.

The cost of a product liability policy varies. If the product you sell is low-risk (like bookmarks) then your policy would be much more inexpensive than a policy for a company that sells something that could feasibly harm people, such as curling irons or flat irons, which involve high heats close to a person’s body.

The most important thing is to evaluate the matter seriously, as you would anything else in your business, and check the options available that can help minimize your risk.

The first type of product liability insurance coverage involves a production flaw, which means that during the manufacturing process there was a flaw which can turn up later and injure someone.

If you sell this product as a retailer you can still be held liable. A design defect will be covered by product liability insurance as well.

A design defect did not happen during the manufacturing process but the party or parties that designed the product did not see that the product will eventually fail. Poorly labeling of a product could get you hauled into court.

An example of this is the label on motorcycles warning that this product, if not used properly, can injure and kill.

Your business is too valuable and you worked too hard to build it up and then lose it in a court suit. Pay the extra money for product liability insurance and sleep better at night.

Selecting the Top Texas Real Estate School

If you want to accomplish your goals of pursuing a career in real estate the expedient way to approach is a Texas Real Estate School. You cant trust all online schools as most of them just give technical knowledge to pass the license exams but to pursue a successful career thereafter one has to make a wise selection which teaches you the key essentials for success.

When you track a research the first thing to notify is it should be listed and has done good business in selling or buying estate.

The school must have good experience and expertise as well in sales of real estate along with skilled management & training.

An ideal school must give choices to select the time of your own, give the choice of learning from home too with the full online availability of subject matter and give options for online courses too. Nevertheless many prefer tradition classroom training too. Thus one can choose the best suiting method fitting their lifestyle.

They should give keen knowledge and, methods to pursue successful career including strategies and skills to develop relationships with prospective clients, generating business grounds, leads and budget resulting in high yield profits.

Thus before selection of a particular estate school investigate properly for the courses provided and reputation of the organization in the market before going for examination.

Do You Need to Check Your Product Liability Insurance Coverage?

Are you covered? Check your product liability insurance coverage.

Your product liability insurance should protect your business from claims related to the manufacture or sale of your product(s) to the public.

It should cover your liability for losses or injuries caused by a defect or malfunction of the product to the buyer and /or user of your product. In some circumstances, loss or injury to the buyer or user through a defective design or a failure to warn the buyer or user.

There are three basic types of products “claims” your company may face:

  • Manufacturing or Production Flaws– This is a claim that some part of your production process created an unreasonably unsafe defect in our product.
  • Design Defect- This is a claim that the design of your product is inherently unsafe.
  • Defective Warnings or Instructions- The type of claim is that your product was not properly labeled or had insufficient warnings for the consumer to understand the risk.

Damages awarded in these types of claims can include compensatory damages, economic damages, attorneys’ fees, medical costs, and punitive damages. Product liability claims can put your business out of business, so check your product liability insurance coverage.

Also, If your business manufactures or sells a product it could be held liable for damages to a person using it. The smart thing to do is make sure you have a product liability insurance policy in place to cover this type of liability.

In most cases, some form of insurance coverage will be present in the standardized business general liability insurance or business owners insurance policy but you will need to confirm this with your insurance professional to make sure you have ample coverage for the type of liability that could be attached to the product you sell to the public.

There are just a few steps you can take to minimize your vulnerability to lawsuits due to product liability negligence.

For manufacturers, sellers and many other small businesses working with food products having ingredient statements, full correct usage instructions and even warnings about how not to use the product can be printed directly on the items.

Also, having the proper packaging and user manuals giving further instructions and assumption of risk warnings, contact information and what to do should the product malfunction are helpful but still don’t provide complete protection.

It is difficult to imagine all the scenarios and conditions in which your products will be used (or abused).

The safest course would be to contact a law firm that specializes in product defect and strict liability claims policy and let them chose the policy that best fits the product or service you provide.

Know Everything You Need to Know about Business Liability Protection?

Many business owners know that they need to check into business liability insurance, but few understand the difference in the three main types of policies.

The three types of insurance are product liability indemnity, and general liability insurance.

In this article, we’re going to cover all three types of insurance policies in depth, so that a complete understanding of what each policy does can be had.

First, we have product liability insurance. Product liability is the responsibility a manufacturer has in the legal sense of its product in relation to a consumer. Liability comes out of the inferior manufacturing of a product, including defects or faults in the craftsmanship, materials used, or individual components of the product.

When a manufacturer fails to properly create a product, test a product, or warn a consumer about hazards that could occur if a product isn’t used appropriately the product liability increases.

What is NOT included in product liability insurance is protection against negligence by service providers or consultants. That is also not included in general liability insurance. Professional indemnity covers those sort of claims.

Have you ever seen those warnings on products that give an obvious warning about how not to use a product? Believe it or not, that’s one of the best ways a business can protect itself against lawsuits and legal claims. Product liability insurance policies protect businesses against lawsuits that originate with the injury caused by the use of a product, and one such case is when the product could mistakenly be used one way and there is no warning cautioning against the improper use.

Hazards of a product include injury to a person’s body or damage to property because of a defect or mislabeling of a product. The omission of warnings can also be a hazard. These are not considered hazards if the injury or damage occurs on the property of the business, or before the possession of the product has been released from the business’s possession.

For example, a product such as a curling iron might have a warning on it not to touch the metal part of the curling iron when it is plugged in and turned on. Common sense would hopefully prevent someone from touching the heated part of such a product, but if there is no warning in writing cautioning people against taking such action, the businesses involved in releasing that product to the public can be held liable for any injuries associated with using the product improperly.

With product liability insurance, a business is protected from financial harm when situations like these come up and they are held liable for damage or injury related to the use of their product.

Its Now Easier than Ever to Become a Licensed Texas Real Estate Sales Agent

If you wish to begin your career as a real estate sales agent, you need to carry a Texas real estate agent license.  For that, you need to meet the licensing requirements prescribed by the Texas Real Estate Commission.

The process of obtaining the salesperson license is as follows:

  • Attend the classes required to pass the relevant real estate courses.
  • Give your fingerprints for a background check.
  • Apply to the commission for an inactive real estate agent license.
  • Schedule the real estate license exam.
  • After you have passed the exam, you will receive an inactive real estate sales agent license.
  • Finally, you will get an active real estate sales agent license once your performance is endorsed by your sponsoring real estate broker.

Let us look into each point in detail:

First, you need to apply for an inactive real estate sales agent license to the commission. Once you apply for the license, you have one year to complete all the necessary steps, which include fingerprints submission, background check, and meeting the educational requirements i.e. completing 180 classroom hours.

Once you are done with this, you are required to schedule the exam. All of these steps are mandatory in order to take exam. If you fail in any step, you need to resubmit your application to the commission, which is very expensive.

All the applicants must give their fingerprints to the FBI via the Texas Department of Public Safety. This will allow the commission to conduct a criminal background check and give clearance that allows licensing. This process of conducting a background check is done by MorphoTrust USA.

  • Every applicant should complete a minimum of 180 classroom hours on the specified qualifying coursework.
  • The coursework includes learning the principles of real estate I & II, law of agency, law of contracts, promulgated contract forms and real estate finance.
  • Once the coursework is completed, applicants are eligible to take the exam.

If the commission accepts the application, the applicant is authorized to take the exam. Therefore, the applicant can approach the test provider (Pearson VUE) to schedule the exam. Pearson conducts the exam in 18 cities in Texas. The cost of scheduling the examination at this site is $54.

Applicants also need to submit a moral character determination form along with their inactive sales agent license application to the commission in order to take the exam. This helps to keep a clear record of accomplishment.

Once the exam is scheduled, candidates can take the test. After passing the exam, the applicant receives an inactive real estate sales agent license from the commission.

Finally, the applicant needs to find a sponsoring real estate broker. With the help of the sponsoring broker, the applicant can apply for an active real estate sales agent license by submitting a Sales Agent Sponsorship Form to the commission.

If the application is accepted, the commission will issue an active real estate sales agent license entitling the license holder to practice real estate under the sponsorship of the real estate broker.

The applicant cannot authorize any real estate services until the commission has issued an active license.

There are many organizations which help in all the process of obtaining an active real estate sales agent license. They guide you in the correct way to get the license, saving you time and money.

Get started today in obtaining a real estate sales agent license and begin to have success in your new career.