Products Liability Insurance - Products Liability Insurance
Coverage
Products Liability Insurance - Products Liability Insurance
Coverage
Liability Insurance for Products you design, manufacture, market
and distribute.
Designing, manufacturing or distributing a product is an exciting
venture. However in our complicated world simply selling a product
has become cause for concern, and moreover a product liability
exposure. So much so that many wholesale and retail operations and
venues require that you as the manufacturer, distributor or
wholesaler have products liability insurance on the items you
develop. Additionally, as a retailer of these products, you may be
held responsible if there is an injury that results out of use of a
product you sell.
What is Products Liability Insurance?
Products Liability Insurance Coverage covers the policy holder in
the event that a suit arises out of the use of the insured's
products. This can be loss to personal property, business property,
injury or death. These items may be clothes, toys, tools, building
materials, electronic devices or even pet food or supplies.
What does Products Liability Insurance cover?
Liability insurance is designed to protect the business against
losses even if they are negligent or liable for damage, injury or
loss to another's property. Typically, damages, legal defense fees
and settlement charges are paid by the insuring company when a claim
is filed against the business as a result of a Products Liability
Suit. Products liability insurance will cover the insured for suits
that arise out of damage or injury of use of a product that the
holder of the insurance policy manufactures or sells.
Bodily Injury
Liability coverage may pay the affected person or firm for the cost
of care, the loss of services and restitution for death that results
from an injury.
Property Damage
In the event your business or product causes damage to, or causes
the loss of use of someone's property. Property damage liability
coverage may pay for the value of the physical damage to the
property; or the loss of use of that property.
Who Should Have Products Liability Insurance?
Anyone that is responsible for the design, manufacture, sale or
distribution of a component or end user product. This applies to any
business or individual that manufactures his own product or even if
the product's manufacturing is subcontracted out buy another
operation, even if the operation is overseas.
What Does Products Liability Insurance Cost?
Products liability insurance costs are much like any other liability
insurance product. There no real average rate because they are based
on the specific type of product you manufacture, retail or market.
There are some products that pose very little potential to cause
harm or damage and there are others that have a higher propensity to
be risky, and therefore carry higher premiums.
What types of products need products liability insurance?
Essentially any product that is put into market or sold in any venue
should have products liability insurance. Some examples are food,
clothing, tools, energy products, furniture, stationary goods,
beverages, baked products, luggage, pet items, heating & cooling
apparatus, electronic goods, vehicles, toys (especially).
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