Does your company manufacture, distribute, design, or sell products? If you tick any of these, then it is necessary that you carry product liability insurance because you don’t want to risk everything without protection, do you?
You may have read about Japanese airbag maker Takata, which was forced into bankruptcy following a huge product recall of their airbags, which were linked to deaths and multiple injuries globally. This means that regardless of company size, you are prone to get entangled in a legal nightmare that could cost billions, pushing you to close shop.
Give Your Business Product Liability Claims Protection
Product liability lawsuits usually arise from manufacturing defects that happen while the product is being made, design flaws that exist before the product is being produced, strict liability when a customer is injured even if there is no negligence on the part of the manufacturer, and warning or use defects that occur when the manufacturer fails to properly label or provide instructions and warnings on the use of the product.
Therefore, any company that deals with consumer goods should have a product liability policy in place. It insures your firm against claims of bodily injury or property damage caused by a product you are producing, handling, distributing, or selling. It also ensures your business is covered in scenarios where your product results in wrongful deaths, property damages, injuries, and illnesses to buyers, users, and even bystanders. Besides, some businesses or customers won’t collaborate with you if you won’t obtain coverage.
But, the policy does not pay for lost inventory costs, transportation of the product, damage to your product, and employee injuries sustained while producing the product. It also does not include product recall costs, which can be covered by product recall insurance.
Businesses That Require Product Liability Insurance
Product liability claims occur even among the most conscientious of companies. Whether it is small companies or multinational firms, several industries can enroll in product liability insurance, including:
Product liability insurance costs vary from business to business. Factors that impact rates include your policy limit, location, industry, company size, products, and claims history.
Buy Colorado Product Liability Insurance
If your firm is located in Colorado, we can help you find the broadest product liability coverage available, with our extensive network of insurers.
Call us at 719-329-4441 so we can discuss your requirements.