Potential Lawsuits and Product Liability Insurance

Product Liability Insurance

A company is only as good as the products they produce and sell. Consumers expect the items they buy to perform as expected and there remains a growing concern about product safety, particularly with all of the product recalls that occur from time to time. Providing products you manufacture comes with a certain amount of risk. This is why organizations put these items through rigorous testing before making them available to the public.

 

With all of the competition in today’s burgeoning marketplace it’s important to not only stand behind the products you sell, but also to ensure that there are no hazards related to the normal use of these items. Product Liability Insurance is available to help pay in the event that a lawsuit is brought against you and your company for negligence or public endangerment related to the use of any products you currently market.

 

Lawsuits are a common concern for many manufacturers

 

While no one is happy to hear that circumstances have resulted in their being named in a lawsuit this can quite easily be a reality. Carrying insurance is one way to be prepared for issues that could ignite such actions. Having Product Liability Insurance coverage is how most major manufacturers are able to protect their interests. You really need to take into consideration many of the implications that can arise from the use of your products. Safety should always be a priority for anyone that manufactures any type of products.

 

The great thing about having Product Liability Insurance is that it protects you should a lawsuit arise due to the improper use of your product, something that can be difficult to prove. Regardless of the reason why a product is deemed unsafe it will be costly if a claim of this sort winds up in a courtroom. In the event that a product that you manufacture accidentally injures someone, or causes property damage, your product liability coverage protects you when your business is deemed financially responsible to pay claims.

 

Most manufacturers have agreed to put warning labels on packaging (or on the product itself) to both, demonstrate how to use the product properly, as well as to provide a warning about its misuse. Speak to an agent about your questions or concerns related to the importance of carrying this coverage.