Every business that sells or manufactures products needs product liability insurance at some point although some do more than others. Going into a new business? Not exactly sure if you do need Product Liability Insurance? Well, read on! This article is to explain why exactly you need Product Liability Insurance. You may want to see here https://generalliabilityinsure.com/ for your product liability insurance.
Do You Need Product Liability Insurance?
If you are manufacturing products, selling manufactured products as a wholesaler or retailer, importing or exporting these products, the answer is yes, you do need product liability insurance.
A Product liability insurance is a cover for any legal fee or damages incurred from damage done to a customer through the use of the created, or purchased product. A Product Liability Insurance is never standoffish, rather it comes as the full package on a public liability insurance policy (this may differ as per regions).
Damages could be recovered by a customer for up to about three years or even longer and so, as a manufacturer or Importer, or trader, you do need product liability insurance.
The Need for a Product Liability Insurance as a Manufacturer.
As the manufacturer of whatsoever product, of course, you do not intend to have faulty products, but sometimes the unprecedented happens. Having Product Liability insurance does help to keep the company’s head above water whenever expenses like damages, legal fees, compensatory levies et cetera come up. Also, Damages may be claimed even well after the company stops manufacturing. While the company may be unable to pay, the insurance could still be valid.
The Need for Product Liability Insurance as a Trader
If you stock products, either as a wholesaler or a retailer, a consumer who purchased damaged products at your store could charge you for damages. The only way to avoid this is to prove that the damage to the product which caused the injury to the consumer had occurred from the factory. This is a near-impossible task and as such, a much feasible plan is needed, hence Product Liability insurance for traders, wholesalers, and even Retailers of Products.
Also, if the manufacturer is out of business the trader who still has goods in stock will be liable to paying whatsoever damages incurred from a faulty product.
The Need for Product Liability as an Importer/ Exporter
An exporter/importer of products could also be liable to pay damages for faulty products that cause damage to a user especially if the company is out of operations or the importer/ exporter is stuck between proving that the damage occurred at the factory.
A product liability insurance covers all of these unprecedented expenses and since damages could be recovered for long periods, it helps keep the importer/ exporter from taking a financial nosedive.
Who needs Product Liability Insurance?
In addition to the above, the following set of people need Product Liability Insurance to cover a lot of unprecedented expenses in the form of damages or legal fees;
- Any company/ business that sells a product with their brand name visible on it
- Any company that fixes or repurposes whatsoever product is greatly in need of a product liability insurance
- Whatsoever firm, factory, or company that produces a product
- Any business that deals in the importation or exportation of products.
Speak with your public liability agent on the benefits available in your product liability insurance as well as other packages available to you.
A Product Liability Insurance is best recommended for smooth operations for any kind of business producing or marketing products as it is on all levels; trading, exporting retailing et cetera. You need a Product Liability Insurance.