Should your business have product liability insurance coverage?
A product liability insurance policy is a form of insurance coverage that protects you and your business from liability claims related to the sale, installation, use and misuse of your products by clients, customers and demonstrators. A comprehensive product liability insurance policy will cover both the manufacturer of the product, and the sale representative of the product, be it a distributor or a commercial outlet against injuries or damages that result from your product. This is a valuable tool to protecting your financial interests in the event that something goes wrong with your product, or in the event that a customer or client misuses your product.
Manufacturing Flaws and Defects
A product liability insurance policy will cover you whether you manufacture the product or if you sell the product, if there are any manufacturing flaws or defects inherent in the product. This can cover you if there is something small, like a line worker that forgot to tighten something, or if there is a major, sweeping flaw in the manufacturing process.
Flaws or Defects in Design of The Product
A comprehensive product liability insurance policy will also protect you, whether you sell a product or you make the product, if there is any kind of flaw that pops up in the design of the product itself. Say, for example, that Widget A rolls off of the line, but after a few months it becomes obvious that due to a poor design flaw, some people are injured. This insurance coverage will cover you against claims made on the basis of design flaws.
Flaws or Misleading Instructions or Product Warnings
Also, if your product is found to have any kind of flawed, unclear or misleading instructions or warnings, product liability insurance will cover you against the claims made for liability damages.
Liability for Ancillary or Accidental Injury
And, if there are any random accidents or other kinds of incidents involving injury, even if there is no direct link to defects or flaws, product liability insurance will cover you.
Remember, though, that the standard comprehensive product liability insurance policy only covers damages related to claims made due to injuries related to your product. It does not cover you for damage claims made for destruction or damage to personal property.
At EnTrust Insurance, we’re experts at determining the exact product liability protection you and your business needs. We service businesses in Miami and throughout the state of Florida.