Product Liability Insurance is the insurance on a professional contractor from filed claims that may arise due to product damage on a client.
What Does The Policy Cover?
The insurance covers the policyholder in case any kind of incident occurs, including a loss of personal or business property, injury, or even death.
Although “products” can refer to any number of things, product liability tends to deal with merchandise in the form of tangible property; however, it has recently been stretched to include other items such as pets, real estate, and other intangible objects.
It’s important to have proper product recall coverage in case of accidents. Having low-cost liability insurance will help protect the business against any impending losses even if they are liable for damage or loss to another’s property. Usually, settlement and damage charges are paid by an insurance company when a suit has been filed against the business.
Having proper coverage may be able to pay for any affected people in case of bodily injury and will provide for the cost of care, loss of services, and even compensation for death.
In the event that a business or product causes damage or impending losses to someone else’s property, product liability insurance may be able to pay for the value of the physical damage.
Who Needs Coverage?
Anyone who is responsible for the design, manufacturing, sales, or distribution of a product should have product liability insurance. This can apply to both companies and individuals.
A product liability insurance policy is rated based on what the product is, the quantity of market distribution, the purpose of the product, the shelf-life, and the materials the product is made of. Insurance policies also consider the clarity of written usage instructions, warranties, and guarantees made by the sellers, and any other claims put out by the manufacturers or distributors.
Product liability insurance costs are roughly the same as any other type of liability insurance. This can differ depending on a variety of factors; there is no set rate because all prices are determined by the specific type of product and the details that come with distributing it.
It’s important to note that some products may pose a higher potential for damage to others. One can get a specific product liability insurance quote by filling out a product liability quote request and personally consulting with an insurance company.
As accidents and other events are hard to predict and liable to occur, it is important that essentially any product that is sold on the market has a product liability insurance policy placed on it. Items can range from food to clothing items, to furniture and electronics.