If you make money by selling products to consumers, you could have increased risk for a lawsuit that claims product liability. Any defect in a product that causes damage to property or injury to another could lead to litigation against your company. Product liability insurance is a way to protect your business from these claims, but there are several options with regard to coverage.
Forms of Coverage
If you are a supplier, retailer, distributor, manufacturer or other organization that sells to the public, you may be held liable for damages that occur from the use of your product. These types of product liability insurance can protect you from the financial fallout of such a claim.
- Product Tampering: If another individual corrupts a product or tampers with it, this insurance could help with product restoration expenses, product recall, destruction of the tampered product and loss of profits.
- Hazardous/New Products: Hazard liability often accompanies products made in factories, such s as chemicals, cosmetics, drugs, ladders and more.
- Product Warranty Inefficiency: This is a warranty form of coverage that helps pay for the expenses when a line of products experiences performance failure on a mass scale.
- Product Recall: In the event of product failure or malfunction, recall costs such as shipping, communication, media announcements, overtime labor expenses and product destruction are covered.
Product liabilities are varied, which is why there is a need for several types of product liability insurance. Speak to a broker about the option that covers your greatest risks.