One mistake can derail your whole operation.
So why take the risk?
What is Product Liability Insurance?
As a business owner, you’re responsible for every product you make and sell. If one of those products is faulty, or causes some sort of injury and you get tangled up in any lawsuits, your business could be held accountable for the consequences that follow. In some situations, you may be proven innocent yet the costs can also rack up. Hence, a product liability policy can incrementally minimize the risk and costs you may face.
What does Product Liability Insurance cover?
- Products that cause bodily injury to the customer
- Products that cause third party damage
- Food and Beverage that causes sickness
The common issues for these reasons include:
- Design defect: Unsafe or faulty design can lead to design defects
- Manufacturing defect: Issues such as mistakes during the assembly process or a missing piece
- Marketing defect: Incorrect labeling, lack of safety warnings or unclear instructions
In terms of costs, the following can be mitigated with a PL policy:
- Medical costs to injury
- Legal fees
- Defence costs
- Settlements made against your business
Is Product Liability Insurance important?
Who needs Product Liability Insurance?
How much does a Product Liability Insurance policy cost?
The following factors are taken into consideration when determining the cost of your product liability insurance policy:
- Claims history
- Policy limits