Finding The Best & Most Low Cost Product Liability Insurance For Small Business
Product liability insurance is designed to protect a company or manufacturer from damages that arise from defective products the company has sold, made or put out through distribution. Product liability coverage can offer, as well, protection against a claim that arises because of damage that has occurred through insufficient or faulty instructions regarding using a product or failures in warnings that are printed on the product’s labeling. Product liability insurance for small business is as important as it is for large corporations. But keep in mind that this type of coverage is different and usually separate from standard commercial insurance.
If you’re small company is a manufacturer of products, or your business distributes products, you’ll want to protect your business against the inevitable mistakes that can happen to any company that makes or sells products. Product liability insurance for small business takes into account the unique needs of the small business person.
So how do you go about finding the lowest cost product liability insurance for small business while still getting the protection your company needs? The first step is to use an independent insurance agency, but that shouldn’t be the end of your research. Snyder Insurance in Chicago and Illinois takes a look at how to get the best value for your small business buck when exploring your product liability insurance cost.
The Basics On Product Liability Insurance For Small Business
Some way, somewhere in the U.S. a faulty or hazardous product is the reason that injury occurs 1000’s of times each year. Regardless of when or how it might happen, accountability for defects in products causing injury can impact every seller involved along the chain of distribution. Without the right product liability insurance for small business, a small business can suffer profound consequences whether that business is directly responsible or not.
- Just how a company can suffer exposure to a product liability suit includes:
- Defects that occur whether at the original manufacturing company or later at any importers or distributors
- Any manufacturers involved with a component part
- A company, person or business involved in assembling, or the installation of, any products in question
- Wholesalers that carry the product
- Any retail stores selling the product in question to consumers
The legal definition of “Strict Liability” also can allow compensation to persons who have suffered injury because of defective products or product warnings. This can be done with no need on the alleged victim’s part to show how a manufacturing company or a business that sells the product is responsible for actual negligence. Whether a company needs product liability insurance for small business or large, the need for the coverage is evident. The trick, of course, is to get the most coverage at the product liability insurance cost your business can afford.
What Product Liability Insurance For Small Business Should Include
Good, basic product liability insurance for small business should cover you for goods or products that your company is manufacturing, selling, handling, distributing or is responsible for disposing of the product. Proper liability coverage should offer, as well, protections against providing, or failing to provide, any warning or instruction regarding the product.
How To Get The Best Value On Product Liability Insurance For Small Business
- The first order of business is to work with an independent insurance agency. Because independent insurance agencies are not beholden to a single insurer, they have great flexibility in helping a company shop for the best price on product liability insurance for small business. By definition, his or her job is to get you the very best coverage for your budget’s product liability insurance cost.
A good agent worth his or her salt will go more than the extra mile for your business. You can help the process by showing your agent the company’s business plan, telling the agent the concrete value of the company, and the robustness of your financing. Giving your agent these tools will help him/her in finding the right product liability insurance for small business for you.
- Is your home also your place of business? Many small companies work like this now. But be aware that the insurance you carry on your house and its contents does not equate to product liability insurance for small business. People using their house as a base for their business are as vulnerable to product liability lawsuits as companies that have designated space in areas like business or industrial parks, shopping malls and centers or street side market areas. If your place of business is also your home, you will especially want to protect it with good product liability coverage.
However, keep in mind that even though your basic homeowner insurance likely does not include product liability insurance for small business working out of a residence, that does not mean it isn’t possible to expand or amend the basic coverage to include it. Though most business people working out of their homes think that can’t be done, in fact, home policies can often be set up to include product liability coverage.
This may be a very good option in keeping down your product liability insurance cost. So, carefully go over what your home policy includes, then take the policy to your independent agent to see how or if you can add product liability coverage to it. You may even want to go the extra mile by consulting with a lawyer who specializes in business to ensure the product liability insurance for small business amendment to your home policy covers you thoroughly.
- Ask your independent agent about specialty market coverage. This type of policy can be a good fit for unique companies when it comes to product liability insurance for small business. A specialty insurer will likely have a particularly good grasp on the actual risk your business faces. You may even discover that a specialty market policy offers the best value along with a lower premium.
Even if your first thought is that your type of business wouldn’t apply, ask anyway. Thoroughly exploring every possible option is the best way to make sure you’re getting the very information about your liability coverage.
What To Expect In The Event Of A Product Liability Lawsuit
Many tens of thousands of product liability lawsuits are filed every year in the United States. It works out to about 1 in every 6 lawsuits of any kind going before the courts. Typical awards regarding product liability have exceeded well over three million dollars, with the average being well over a million and a half dollars. The decisions in product liability lawsuits overwhelmingly favor the plaintiff bringing the suit against the business. And these losses due to lawsuit awards do not include the expenses that are incurred by a business to defend itself: the hiring of expert witnesses, costs of evaluating countless documents, etc. So the need for product liability insurance for small business is very real.
Snyder Insurance & Financial Services Is Happy To Help
As a full service independent insurance agency that has proudly served the Chicago area for over 30 years, Snyder Insurance and Financial Services has the experience to help you understand the type of product liability insurance for small business that’s the best fit for you company and its product liability insurance cost.
Our portfolio offers our clients over forty of the finest and most financially secure companies in the industry. With twenty-plus highly trained professionals on our team, we can customize these products and services to meet the unique needs of every client.
Call us at (630) 960-4848 or use our Contact Page to learn how we can serve you.