What is Product Liability Insurance?
Product liability insurance covers the class of insurance for tangible goods or products, which manufacturers, marketers, suppliers and traders become liable to pay legal expenses for buyer losses, injuries or property damage in case of buyer findings about defective or break down goods. Read about different types of insurance policies and find which one is best for you. Read what is insurance ?
Product liability insurance provides protection at both ends, assuring safety for business holders as well as for customers, as consumers of the product can claim for damages and legal fees by filing a suit on the liable party; thus, liability insurance defends the business from these claims. Read what is term life insurance ?
Product liability possible claims involve:
- Manufacturing or production defects- Claim made on defects during product manufacturing process
- Design flaws- Claim made on product design failure and hazards.
- Defective warnings or marketing flaws- Claim made on risks and dangers due to inadequate warnings and safety instruction.
People can sue for reimbursement for a number of liabilities, depending upon the percentage of damage they
have faced; so it is highly recommended for you to
ensure your products quality and standard observance, acquiring product liability insurance for your business safety. If you want to follow a proper business
channel, you need help of an insurance broker and financial backers to protect your business assets.
Product Liability Claims
If you deliver faulty goods to the customers, you will be liable to pay compensation of claimants. You have the right to claim the manufacturer or the processor, if you own product liability insurance. Your possible claims may be
- Faulty goods supply
- Claim to be a defendant on providing ample safety directions about product misuse
- Claim to be a defendant for mentioning return policy of faulty goods to manufacturers in the consumers contract
- Claim to be a defendant having excellent check and balance system for product quality control
If you are a retailer or wholesaler, the first and legal responsibility for business safety and security is to assure that products, you supply, are fit for purpose and fault free; so that you may not be liable to any infringement.