What is Product Liability Insurance?
Product liability insurance is a type of insurance that protects businesses from claims that their products have caused injury or damage to others. This type of insurance can be essential for businesses that manufacture, sell, or distribute products, as it can help to cover the costs of legal fees, settlements, and judgments.
Who Needs Product Liability Insurance?
Any business that manufactures, sells, or distributes products could potentially be held liable for product liability claims. This is because even a small defect in a product can cause serious injury or damage. As a result, it is important for all businesses to consider purchasing product liability insurance.
How Much Product Liability Insurance Should I Get?
The amount of product liability insurance you need will depend on a number of factors, including the type of products you sell, the size of your business, and your financial resources. However, it is generally recommended that businesses purchase at least $1 million in product liability insurance.
What Does Product Liability Insurance Cover?
Product liability insurance typically covers a wide range of costs, including:
- Medical expenses for injuries caused by your products
- Property damage caused by your products
- Legal fees associated with product liability lawsuits
- Settlements or judgments awarded in product liability lawsuits
Additional Considerations
Here are some additional tips for choosing the right product liability insurance:
- Consider your business's specific risks. What types of products you sell? How many products you sell each year? What is your annual revenue?
- Make sure the policy covers all of your products. Some policies only cover certain types of products, such as food or toys.
- Read the policy carefully before you sign it. Make sure you understand all of the terms and conditions.
By following these tips, you are able to choose the right product liability insurance for your business.