While it’s great having a business, and you have a level of independence, that freedom comes with responsibility. Reliable insurance helps in case of any accidents on the job or things that happen with your products. Here are some benefits of your business having product liability insurance.
Why Do You Need Product Liability Insurance?
You never know if there are any mishaps right around the corner. Your customers expect safe and working products from you. When things happen, you want to be sure that you’re covered and have cochlear implant lawyers who can help defend your company for being in the right.
If a product harms the customer, they may sue your company. Legal fees and settlements can reach $100,000 and up. Even if you do everything in your power to ensure that your products work correctly, you want to protect yourself in a worst-case scenario.
Product liability insurance helps to protect you against claims and ensures your business has staying power.
How Does It Help With Different Defects?
Liability claims come in three forms, such as manufacturer, design, and warning defects. Here are a few ways product liability insurance can help.
Coverage for manufacturing flaws – product liability insurance gives you coverage for any production flaws that cause unsafe defects in your items.
Protects against design defects – after product testing and trial runs, hazardous defects may still occur. Your liability insurance helps you cover design errors that are deemed unsafe for public use.
Helps with packaging and warning issues – maybe you forgot to provide adequate defect warnings or instructions for using the product. In this case, they can sue your company. When you run into a situation where you didn’t properly label the hazardous contents or side effects of the item, your liability insurance helps you prepare and litigate these claims.
Find out the rate charged for the product liability coverage based on the product. If you have a high-risk item, you’ll pay more insurance than something low-risk. You may need a product liability attorney to help you weigh your options when working things out with the insurance company.
The insurance company may request your sales earnings to determine what you’ll pay. Be honest because they may tack on an additional premium charge if you underreport your sales when they audit your policy.
Find a reliable insurance company to help you in this tricky situation to keep you from paying outrageous lawyer and settlement fees because of a product liability case.
