How To Get The Best Product Liability Insurance For You
Product liability insurance is an essential part of commercial coverage for a selling or manufacturing company. It safeguards a business in the event of a claim or a legal suit that arises due to the manufacturing or sales of that business’s product. Among the best product liability insurance elements is the coverage that involves manufacturer or seller liability regarding bodily injuries or property damages that happen to 3rd parties because of defects or malfunctions in products. The 3rd parties who have suffered an injury can be buyers or users of these products as well as any affected bystanders.
Products can be foodstuffs, machinery, medicinal or almost any type of wares purchased by a business or the general consumer. Snyder Insurance and Financial Services keeps a constant weather eye on the latest developments in product liability trends. Below is a break down on what the best product liability insurance covers for businesses and manufacturers.
When Looking For The Best Product Liability Insurance, Keep In Mind The Following Types of Claims
When it comes to product liability trends and claimant suits, the best product liability insurance will take into consideration any of the following:
- Flaws in the manufacture of, or in, the making or producing of the product. The plaintiff may allege that during a stage within production, defects occurred that remained within the products in question and made one or more unduly harmful. i.e., Joe has purchased a hammer at one of his town’s hardware stores. He sustains an injury because the hammer’s head comes off the handle and strikes him. Joe files suit against the manufacturing company that claims the hammer head was poorly affixed to the handle during manufacture.
- Flaws in Design. The plaintiff claims that the design of the product is essentially not a safe one. i.e., in his suit against the manufacturing company, Joe asserts that the hammer’s design is inherently flawed. His contention is that, while still in the design mode, the manufacturing company did not make certain that the device securing the hammer head to the handle was adequate to keep it in place during use.
- A Defect In or Insufficient Safety Warning or Instruction. The plaintiff claims that the manufacturing company that sells the product fails to supply sufficient instruction on properly using the products, or the seller did not provide acceptable warnings to the buyer regarding product risk. i.e., Bob purchases a chemical solvent at the hardware store. Bob becomes sick during the use of the solvent while using it in an enclosed area that has no windows. Bob files suit against the manufacturing company, claiming that the company failed to sufficient warnings that the solvent shouldn’t be worked with without adequate ventilation.
How The Best Product Liability Insurance Protects Manufacturers and Sellers
Though the majority of product liability claims happen to manufacturing companies, vendors or stores who sell goods are also at risk. A retailer, wholesaler, distributor or reseller can all be subject to product liability suits. A store or vendor can be held liable in the event of injuries sustained by the purchaser when the store or vendor is involved in the marketing of products to consumers.
Should this happen and the company, store or vendor is compelled to pay damages that have been suffered by the purchaser of the product in question, the one who sold the product to the injured party can in turn file a suit against the manufacturing company. The best product liability insurance for your business will take all of this into account.
The Best Product Liability Insurance Also Covers Strict Liability
Manufacturers or sellers can also have a suit filed against them based on “strict liability.” This is liability in the event that negligence is deemed absent. This type of liability isn’t founded on any claims of fault. In the case of Strict Liability, claimants who allege injury can win a suit if the claimant proves the four next claims in total:
- The product contained a defect that was dangerous.
- Products in question have caused injury to the claimant.
- Injuries have happened while the claimant used products precisely as the products were meant to be used. i.e., a claimant used a sharp device meant to slice woods or plastics precisely on those materials. He didn’t become injured by using the device to, say, trim his finger nails.
- There has been no significant change made to products once they leave the seller’s premises. i.e., the purchaser did not modify the product in a way that significantly changed the product’s ability to perform safely or as intended.
How The Best Product Liability Insurance Protects Against Damages
A plaintiff who files a product liability suit can possibly be awarded “compensatory damages.” These may include medical costs, losing income due to the product’s use, as well as compensation for pain and suffering. In addition, a plaintiff can possibly win punitive damages as well as certain legal costs.
Keep in mind, too, that more than one product liability suit can possibly be combined to form a single class action claim. It is not at all unheard of for lawsuits such as these to cause the permanent closure of companies. An experienced, quality insurance agent will take such possibilities into consideration when crafting the best product liability insurance coverage for your business’s unique needs.
What To Consider When Getting The Best Product Liability Insurance Coverage For You
The best product liability insurance coverage will be included in your general liability insurance. This combination comes under the heading of “products-completed operations coverage”. Such insurance is typically listed within a policy as Coverage A, Bodily Injury, and Property Damage Liability.
Manufacturing companies that make a product considered potentially hazardous, like a pharmaceutical or insecticide, might find it difficult to obtain product liability coverage through typical insurers. It might be necessary to buy purchase such policies wholly apart through an insurance company that specializes in this type of coverage. A well-qualified independent insurance agency such as Snyder Insurance should be able to find specialty insurers that offer such policies.
Snyder Insurance and Financial Services is a full-service independent insurance agency that has proudly served the businesses and industries of Chicago and the surrounding areas, as well as over twenty more states, for more than thirty years. No other agency is better qualified to help you find the best product liability insurance for your business.
Call us at (630) 960-4848 or use our Contact Page to learn how we can serve you.