Does Your Type of Business Need a Product Liability Policy?


If you are starting a new company that sells or distributes products you may be wondering if you need product insurance to cover any liability claims.

No one really ever thinks of business and insurance as a fascinating subject, but the truth which is hidden in it is that there are so many other goods and many interesting things considered. First, there are many types of business insurance and it has some different kinds.

The general liability insurance is the most common form and type of business insurance business which have got today. Mostly because it covers the board range of that can come in front of us at any time.

General liability insurance also covers some of the different types of level of product liability this is called product liability insurance a type of insurance that is very important if you are selling a product that could attract claims to your business.

Further, You may believe your business free from the risk of being sued due to the harm caused by your goods; simply because you are into the retail business and not manufacturing.

After all, you don’t make the goods, you simply distribute them; how can you possibly be held accountable for defective products?

Such an assumption would be a grave error on your part. The risk might be relatively minimal but it’s present all the same because no matter how hard one tries, some unforeseen simply cannot be avoided.

You, like the manufacturer, bear the responsibility of a duty of care to the customer. Hence, contrary to what you might think, you are not immune to damage or liability claims being leveled against you as well.

It is therefore in your best interest to follow suit and get product liability insurance coverage for these risks.

Under the law, in fact, retailers are just as liable as manufacturers or suppliers. Getting product liability insurance coverage can help to protect you, the retailer, from the risk of losing a lot of money in damage or liability suits in court.

Retailers especially need product liability insurance coverage where they, by virtue of plain bad luck, stand the risk of being unfortunate scapegoats.

It so happens that it is very well within consumers’ rights to simply go after whoever is easier to get to. The retailer becomes easy prey when the manufacturers are too far; as is usually the case with imported goods.