What is Product Liability Insurance?
While some may think of product liability insurance as similar to a manufacturer’s warranty, the coverage is quite different. A product liability policy protects your business from the aftermath caused by your product not working correctly, including property damages and bodily injury claims.
What Does it Cover?
Product liability policies cover various issues that can arise when manufacturing and distributing goods.
- Product Warnings: Even if your company’s goods have the proper warnings for how a customer should use them, your policy will protect you in the event of injury, damage, or lawsuits.
- Design Defects: A design defect that occurs before manufacturing is covered under your product liability insurance.
- Manufacturing Defects: Your policy protects your business from defects related to the manufacturing process.
- Injuries: If a customer or client is injured while using the products, your product liability policy will help cover any legal and medical expenses associated.
Who Needs Product Liability Insurance?
Issues can arise during production for contractors, retailers, manufacturers, and distributors, leaving them susceptible to a product liability lawsuit. Dealing with these claims can be time-consuming and costly, making product liability coverage crucial for any business that makes, sells and distributes goods.
Contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your commercial insurance coverage options in Longmont, CO, and our neighboring communities.
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