If your business deals with products at any point of the supply chain, whether you are a wholesaler, retailer, or manufacturer, product liability insurance is a crucial coverage to have. In this blog, we take a closer look at what product liability insurance is, what it covers, and why it’s essential for your business.
What is Product Liability Insurance?
Product liability insurance is a type of insurance that covers manufacturers, wholesalers, and retailers in the event of an injury or damage caused by a product that they sell.
This insurance is designed to protect your business from the costs of any legal claims or settlements related to a product defect, malfunction, or other issue.
For example, if a customer sues your company after being injured by a product you sold, product liability insurance can help cover the costs of the lawsuit, including legal fees, settlement costs, and any damages awarded.
What Does Product Liability Insurance Cover?
Product liability insurance is a specialty insurance solution that can cover a range of issues related to product liability, including bodily injury, property damage, and even damages caused by a defective design.
Some policies may also include coverage for a loss of income as a result of the product issues. Ask your insurance agent about the coverages available and which might best suit the needs of your organization.
Who Needs Product Liability Insurance?
Any business involved in the sale or manufacture of products should have product liability insurance. This includes retailers, wholesalers, manufacturers, and even service-based businesses that sell or distribute products.
Without this coverage, your company could be at risk of facing significant financial losses in the event of a product liability claim or lawsuit.
Keep in mind that this type of legal issue can be costly. For example, according to the Insurance Information Institute, injury awards result of product liability had the highest median and average values among all types of liabilities in 2020.
How Much Product Liability Insurance Do You Need?
The amount of product liability insurance you need depends on a variety of factors, including the nature of your business, your industry, the types of products you sell, and your risk tolerance.
Typically, most policies will have a minimum coverage amount, but you should work with an insurance agent to determine the right amount of coverage for your specific needs.
If you have any questions about product liability insurance, including how much insurance makes sense for you, contact our experts at Carter Bradley today.
Do You Have Insurance Questions? Contact Our Experts Today
Wrapping It Up
As a business owner, it’s essential to protect your company from all types of risks, including those related to product liability.
Product liability insurance may be a crucial coverage for your business, so make sure you talk to an insurance agent to see if you have adequate coverage in place. With the right protection, you will be able to lead your team with confidence knowing that an insurance company has your back.
Need Product Liability Insurance? Carter Bradley Insurance Solutions Can Help
At Carter Bradley, our team is solely focused on your unique needs to find the best prices and coverage you require for your business, home, auto and life insurance.
We are located in Corona, California. Contact us today by email at email@example.com, by phone at (951) 547-4240, or through our social media accounts on Facebook, Twitter, and LinkedIn.