What happens when your company’s product causes injuries or damages someone else’s property? Lawsuits may arise seeking costly resolutions.
Product liability insurance protects your company from such claims by covering the cost of legal expenses, settlements, and judgments. Without this coverage, your business is responsible for all costs associated with settling the issue.
Depending on the insurance provider, your general liability insurance may include product liability coverage, or a standalone policy may be necessary. It’s crucial to consult your business insurance agent to ensure you are adequately protected.
Businesses that Need Product Liability Insurance
Let’s take a look at the types of businesses that most likely need product liability insurance:
- Manufacturers: If a manufacturer develops a product that harms a consumer, the business may be subject to a lawsuit.
- Marketing Firms: Improper marketing or labeling that leads to damages can become the source of a costly product liability case.
- Retailers: Even if a retailer didn’t create the product, they could be held liable if they were the establishment that sold the faulty goods to customers.
- Restaurants: A patron who suffers a severe allergic reaction due to cross-contamination in a restaurant kitchen may pursue a claim against the establishment.
- Distributors: Even if a business is only involved in the distribution of a product, they may find themselves in the middle of a product liability dispute.
Owners of these types of businesses should strongly consider having product liability insurance for financial protection in the event of a pricey settlement.
Ask Your Agent
If you are unsure whether or not your company needs product liability insurance, it’s always best to ask your agent. Please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont with any commercial insurance needs or questions.
We give out $25 gift cards for referrals that become our insurance clients.
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