Countering a Lawsuit with a Liability Coverage for Product Businesses


Selling a product comes with its share of liabilities. Getting sued for products sold or distributed due to problems can be very costly. Avoiding them means having good customer care and a product liability insurance policy.

This type of insurance is important for businesses that engage in selling, manufacturing and distributing products.

Aside from the buyer of a defective product, claims for damages might be filed even by bystanders. If the defective product happens to injure a family member, friend or neighbor who didn’t buy the product but was injured because of it, that person still has the right to sue for the injury.

When a distributor, manufacturer or seller already has a general liability insurance, he or she must see to it that the general liability insurance includes provisions for product liability. Otherwise, he or she should purchase a product liability insurance.

Product liability insurance shouldn’t also be exclusively bought by manufacturers, sellers, and distributors but also by middlemen, reconditioners, rebuilders, successor corporations, and lessors.

Manufacturers may still be liable if the product

that they have made is misused or revised.

Likewise, a product distributor needs the insurance because claims may still be filed against people or companies involved in a defective product’s distribution.

Re-conditioners or re-builders are also liable for the product even if the product was made by the manufacturer.

It is a re-conditioner’s or re-builder’s responsibility to ensure the safety of the machine that they have reconditioned or rebuilt. If the machine has been altered or modified, a rebuilder or reconditioner should incorporate a safety device into the equipment to ascertain that the new product doesn’t become injurious to the user or to anyone standing near the equipment or machine.