4 Key Benefits of Product Liability Insurance
While you may do everything in your power to ensure your products are safe, mishaps can still occur without warning. That's why to protect against claims and ensure the longevity of your business, product liability insurance may be the perfect solution for you. Learn more about the benefits of this coverage below:
Your customers expect you to have safe and reliable products, and failing to meet those expectations can lead to a huge financial loss for your business. If one of your products harms a consumer, a business lawsuit with costly legal fees and settlements can easily reach six figures. While you may do everything in your power to ensure your products are safe, mishaps can still occur without warning. That's why, to protect against claims and ensure the longevity of your business, product liability insurance may be a good choice for you.
Coverage for Manufacturing or Production Flaws
One of the key features of product liability insurance is its coverage for manufacturing or production flaws that cause unsafe defects in your product.
Protection Against Design Defects
Even after product testing and trial runs, potentially dangerous defects can still appear long after production. Product liability insurance can provide coverage for design errors that make goods unsafe for use by the public.
Response for Packaging and Warning Issues
In the event you fail to provide adequate defect warnings or instructions for using the product, your company can be sued. These claims arise when products are not properly labeled or have warnings that are not explanatory enough to reduce consumer risks while using the product. Product liability insurance helps organizations prepare for and litigate these types of claims.
Supplemental Commercial General Liability (CGL) Coverage
Generally, there is a limited product liability protection under CGL policy, yet it may be enough coverage to adequately protect your business. Product liability policies work alongside CGL coverage, providing protection against losses caused by malfunctions or defects in your products.
Want to learn more about product liability insurance? Contact us today!