Important Things to Remember About Product Liability Insurance
If your business sells products, you probably already have product liability insurance in place. With this coverage, you have financial protection from claims resulting from the products you offer, including injuries and other damages.
Here are some other important things you should know about product liability insurance.
Who It Covers
Product liability insurance covers you, as the business owner from claims related to the products you offer.
What It Covers
If you’re found legally responsible for third-party damages related to your products, this insurance can cover the cost of legal fees and other costs related to the claim.
Who Needs It
Any business that sells products could benefit from product liability insurance.
Here are just some examples of businesses who should have this coverage in place:
- Food stores/bakeries
- Pet stores
- Print and copy stores
- Gift stores
- Clothing stores
As you can see, product liability insurance is useful for businesses in a wide range of industries.
What It Applies To
In addition to physical items that are sold (i.e., a lawnmower or a blender), product liability insurance also applies to services sold by businesses.
Say you’re a website developer who builds a website for a client and it has inaccurate information listed on it that results in damages to a client. Although a website isn’t a physical product, product liability insurance could still apply.
Types of Product Liability Defects
For a product liability claim to be successful, the claimant would have to prove damages resulted from a product defect.
There are three types of such defects.
- Manufacturing defects
- Design defects
- Marketing defects
Product Liability Lawsuits
When a claimant makes a product liability lawsuit, they can allege either a product breach of warranty, negligence, or strict product liability, which means they just need to prove the product injured them or damaged their property.
Are you interested in hearing more about product liability insurance and what type of coverage would be right for you? Get in touch with Rueter Insurance today so we can help you get all the answers you’re looking for!