What Does Product Liability Insurance Cover?
A business should carry products liability insurance if they are a supplier of certain products. It is especially important for plumbers who install electric showers, as the risk of damaging electric showers is great, and they are often the first point of contact for a consumer. Having proof of a faulty product can help the business get compensation. The insurance can also protect the business’ assets in case of a lawsuit. In the event that a product causes damage or injury, a consumer can file a claim against the manufacturer of the product.
General liability insurance covers bodily injury and property damage. While the coverage does not cover defective design claims, it does protect a business from the financial consequences of product recalls. Other forms of liability insurance can protect a business from a large number of potential lawsuits. For a small business, products liability insurance is a must. Even if your company has a standard general liability policy, it is a good idea to purchase a specific product liability policy.
A product liability lawsuit can leave a business in financial ruin and possibly bankruptcy. A products liability insurance policy is designed to protect a business from these potentially costly events. Despite the high cost of a lawsuit, a solid liability policy can help it continue operations. It also helps to safeguard the company’s reputation. While a product liability lawsuit can be extremely painful, a product liability insurance policy can help protect your business and reputation.
A product liability insurance policy can help your business avoid a lawsuit that is filed because of a product that caused damage or injury. A policy covers the costs of medical bills, lost wages, and loss of love. It may also cover property damage, including the physical damage of a building or property. However, the best protection is to have a comprehensive product liability policy. This type of insurance is crucial to a business’s bottom line.
A product liability insurance policy is an important component of any general liability insurance policy. It covers the costs of bodily injury, disease, and property damage caused by a product. It can be purchased as a standalone policy or as an extension of a commercial general liability policy. A standard policy will usually include an “each-occurrence” limit of up to $1 million and a $2 million aggregate limit. Further limits of product liability insurance can be purchased separately or as a supplement to the existing policy.
Although product liability insurance does not cover lawsuits that are caused by defective products, it provides financial protection to manufacturers and distributors from legal claims. It can also be incorporated into a General Liability policy. It is an excellent choice for manufacturing companies as it protects them from lawsuits caused by faulty products. It pays for the defense of the company in the event of adverse jury-verdicts, legal expenses, and settlement awards.