You don’t want to think about it, but a product that you sell might cause an injury. When that happens, you could be sued even if you did not directly manufacture it. With these lawsuits, an individual needs to prove that you knew about the problem but didn’t do anything to prevent it.
When that occurs, it is called negligence. In most cases, that is a massive problem for your business, and it is a legal liability claim. If you want to protect your business from product liability, you should think about insurance coverage.
What Is Product Liability Insurance?
Your business might need product liability insurance to protect your entire company. This type of insurance can protect you in several different ways. With these lawsuits, it does not matter whether you are a manufacturer, seller, or distributor, you need product liability insurance. You will be protected from lawsuits as the result of injuries or damages associated with a defective product.
In some cases, you should even think about additional insurance for your business. Product recall insurance is designed to cover the costs if the item is involved in several recalls.
There are three different types of product claims. If you produce an unsafe product, you can be held legally responsible for any damages. This type of product claim is known as a manufacturing or production flaw. Another product claim is known as a defective design. By manufacturing a hazardous design, your business could be responsible for any injuries or damages. Finally, any products labeled improperly might be subjected to a defective warning liability lawsuit. If warning labels are left off the product, and there is an injury, then you could be held responsible.
If an individual decides to file a claim against your company, they will have to prove some of the following points:
- Was there a defective product?: The individual will have to prove that your product was defective.
- Was there an injury?: The individual must also prove that the defective product caused an injury.
- Did the manufacturer breach their duty?: When the manufacturer produces a product, they have a responsibility to make a safe product that will not injure consumers. If that didn’t happen, then the manufacturer breached its duty to the customer.
An individual can file a claim based on strict product liability, negligence, or breach of warranty. You might not want to purchase product liability insurance, but you should think about any potential court claims. Product liability insurance is cheaper than having to pay out lawsuit settlements for a product.
Who Should Have Product Liability Insurance?
You might think that product liability insurance and general liability insurance are the same, but they covered different situations. In some rare cases, general liability can cover product liability, but that often does not happen. You could be liable for a product liability lawsuit if your company sells or manufactures a product. If you are a reseller, you could even be in legal trouble as well. Many business owners worry about legal liability. With the right insurance, you will know that your business is protected from any type of lawsuit.
If you are a manufacturing company, you are a prime candidate for product liability insurance. However, this insurance is also suited for other companies. If you have a repair shop, you might be sued if the client is injured after a repair visit. For those companies that transport products, you might be liable for any damages. If someone is injured while the product is in your possession, you could be sued for damages.
What Does Product Liability Insurance Cover?
When you have product liability insurance, you are protected if a product injures someone. These policies will cover your court costs due to the product. In addition to that, these insurance policies will handle all medical expenses that are associated with the product. In most cases, you can even deduct product liability insurance from your taxes. However, you should ask your accountant about your specific circumstances.
With product liability insurance, you will be covered and have some tax benefits. You can also have some confidence in knowing that your company is protected from defective product lawsuits.
Get Product Liability Insurance
If you want to get product liability insurance for your company, you should contact Lyman Insure. We will be able to find the right policy to protect your business. Our team understands that you have a responsibility to the community and want to have safe products. In the event of a bad product, you do want to be protected from any legal claims. We have a range of options that can help you find the best plan for your company.
For those who want to learn more about Lyman Insure’s policies, make sure to fill out the contact form.
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