When products cause injury or damage, legal disputes can extend beyond the consumer and the company that provided the product, affecting the entire supply chain. These cases can become lengthy, complex, and very costly.
By working with an experienced broker who understands your commercial needs, you can secure high-quality coverage when it’s most crucial. We assist with contract reviews for new business opportunities, ensuring you have the appropriate coverage as your requirements evolve.
What Does Product Liability Insurance Cover?
Product liability insurance protects manufacturers, wholesalers, resellers, and retailers against claims for personal injury or property damage caused by products sold by your business. This coverage is vital for companies that create, supply, or sell products to the public. If a product causes harm, illness, or damage, compensation is often sought through the courts. The primary purpose of this insurance is to cover legal costs and damages.
Who Needs Product Liability Insurance?
Any business involved in making, selling, or distributing products should consider Product Liability insurance. Claims can be valid or unwarranted, but both can be expensive. Even baseless claims must be addressed seriously to protect your company’s reputation and brand value. Knowing you have coverage provides the freedom to innovate and the confidence to sell.
Common Product Liability Claims
Without strong Product Liability insurance, your business could face substantial legal costs. Typical claims include:
- Design Defects: Allegations that your product has been dangerous from the design phase.
- Manufacturing Defects: The most common type, where it’s claimed the product became “unreasonably dangerous” during manufacturing.
- Labeling Defects: Claims that the product has inherent dangers that should have been clearly communicated to customers.
Fighting unjustified allegations is crucial to protect your company from undeserved criticism and to maintain its good standing.
