Owners of a company that manufactures products of any kind have a lot of things to worry about outside of their manufacturing business.
One of these that can be often overlooked is that of product liability and tort litigations. As per the law, if a product that causes harm or injuries to the consumer in any way, then the manufacturers and the sellers are liable towards compensating the buyer, user and even bystanders for any damages caused.
This means that the responsibility if the manufacturer and the owners of the company making any product does not end with them selling the product to the customer.
Product liability litigations, also called tort cases have seen lawyers sue the company for millions of dollars in damages.
So does this mean that there is no way for you to safeguard yourself against such events where your product might have caused some damage to your customer? Well, there is. One option of protection against potential claims comes from ensuring your company and product from any tort cases. This way, in an event of a mishap where the product of your company is found at fault, the compensation money shall be borne by the insurance company instead of it coming out of your pockets.
What Is Product Liability?
It is time that we discuss product liability in a bit more detail. As stated earlier, it is the liability of the manufacturers and sellers of a product that causes injury to the user or the bystander. The legal definition also talks of defects in the product due to which any injury might have come about.
However, in the real world, the courts have often provided huge compensations to the suing individual or party even when no particular fault in the design or manufacturing could be established. Product liability can be due to manufacturing defects, design defect or a marketing defect where the company fails to warn the user of any dangers.
The classical case of such a marketing failure is that of “Liebeck v. McDonald’s Restaurants”, where a lady Ms. Liebeck successfully sued McDonald’s for $2.86m after she spilled hot coffee on herself and received third-degree burns. The case has since become a classic in American legal system for frivolous litigation and exorbitant amount of compensation claims. Such cases make it all the more important for you to have insurance and protect yourself from any similar litigation.
Some information about Product Liability Insurance
It should now be clear to you that product liability insurance is indeed important. Next question is where to find it. products-liability-insurance.com/ is one place where you can get a lot of answers. They are experts in protection against product liability claims and can help you in finding an ideal insurance company for you.
All you need to do is file in an application and they would give provide you with as many as 18 quotes from different insurance companies with competitive premiums. They also offer end to end services and help carry out Insurance coverage audit and contract review so that you can keep your worries at bay.