When someone is hurt or their property damaged as a resultof your product, they may sue you, claiming that you were negligent in ensuringthe safety of your customers or users of your product. Product liability insurance companies are necessary to protect youfrom being held liable for defects in your products and other forms of injurythat your customers may suffer from using your products, even if the problemwas not caused by negligence on your part
ProductLiability Insurance for Small Business
If you manufacture, distribute, or sell products, you need product liability insurance to protect your business from costly lawsuits. Product liability insurance companies offer coverage for damages caused by your products, including personal injury and property damage. To get the best coverage for your business, compare quotes from multiple product liability insurance companies. Be sure to read the fine print and understand the coverage limits before selecting a policy.
If you're just starting, it's a good idea to protect your small business with a product liability insurance policy. Protect yourself from major financial risk if someone is injured or their property is damaged due to one of your products. Product liability policies typically cover bodily injury and property damage claims, advertising injury claims, and defense costs in court. To get started, consult with an independent agent who can help you choose a product-liability policy that fits your specific needs.
If you manufacture or sell tangible products, get general and product liability insurance companies to protect your business against physical damage, property damage, bodily injury, false arrest, and wrongful imprisonment lawsuits. If even you can afford to pay for damages without going under financially, a lawsuit could cause your company brand to suffer so much that no amount of advertising will bring in enough new customers.
General and Product Liability Insurance
Every business needs liability insurance, but product liability insurance is vital for companies that manufacture, distribute, or sell physical products. This type of insurance protects your business from legal action and financial damages if your products cause injuries or property damage. If you don't have product liability insurance companies and a customer sues you, your business could be forced to shut down. To get product liability insurance, contact a professional liability commercial insurance agent or broker.
This situation is known as reputational risk, and it's especially common among small businesses with limited marketing budgets. General liability coverage pays the cost of a lawsuit while product liability insurance helps protect the company's reputation by ensuring prompt compensation for any money spent on goods or services during the period between when they're delivered and when they're paid for.
For example, if an order arrives at someone's home before he has time to check his credit card statement, you might cover him until he pays his bill. General liability covers damages up to $1 million per incident most states require this level of coverage. But many product liability insurance companies owners find themselves with more than one product line each requiring its form of protection so the best course is usually more comprehensive multi-line coverage through an all-inclusive policy.
What Does Product Liability Insurance Cover?
Product liability insurance protects businesses from lawsuits related to injuries or damages caused by their products. This type of product liability insurance companies can cover both physical and emotional injuries, as well as property damage. It can also help cover the costs of litigation, including attorney's fees, court costs, and any settlements or judgments that may be awarded.
Businesses that manufacture or sell products can't help but be aware of their potential to cause harm. A defect, error, or design flawcould cause injuries to users or bystanders, which could lead to a lawsuit. Thecost of these lawsuits and settlements can be extremely high, so it's importantfor businesses that have products on hand and in circulation to purchaseproduct liability insurance coverage.
They also provide product liability insurance companies for manufacturers and retailers of services as well as goods that are liable for injury caused by faulty service. This can apply if a contractor damages property in your home during renovations or an accountant causes you losses due to errors during tax preparation.
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