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.