Staying in business is one good reason why your business needs product liability insurance coverage. If you are sued, you could lose everything, and it might not even be something your company produced! Product liability insurance is needed for all types of businesses, even if they are just a middleman.
If a product you sell is involved in an accident that causes bodily injury or property damage, the lawyers look at everything that could possibly be a cause of that accident. Product defects and product failures are two main sources of personal injury and property damage that result in people suing the company that made or sold that product. If a product that is part of something that you sell fails, you are still liable for the proper functioning of that piece of equipment, even if you bought it from someone else.
Product liability insurance protects your company in the event of a lawsuit arising from product defects and liability. This includes production of the product, product design flaws, and everything else including having protective safety labeling on the product. If you neglect to put a label advising of possible danger, or proper use of the product, you can be held liable. Even with labeling, you may be part of a product failure lawsuit.
For best protection, and to stay in business, be sure you have adequate product liability coverage. Many general insurance policies include some product liability coverage. Be sure you have enough coverage for all you do. If you are a distributor, a refurbisher, or seller of products, you need this type of insurance.
Some accidents are not your company’s fault, but you can still be in the legal line of fire if you have anything to do with the faulty product. Be sure you are adequately insured!
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