Regardless of the type of business you run, you know you need insurance that protects your property, employees, clients and yourself. However, what you may not know is that if you sell a product, you will also need product liability coverage.
What It Does
Product liability insurance is a form of business insurance that protects you should anyone file a claim related to your product. These claims could include damage to or loss of property or injury or death due to defects in the manufacturing, sales and distribution of your product. You may hear this type of coverage referred to as product-completed operations insurance.
How to Choose the Right Policy
The cost of a product liability policy varies greatly depending on the type of company you run and the amount of product you sell. Typically, small businesses will need far less coverage than large corporations. By thoroughly examining your manufacture and distribution process, you can determine how much coverage you need and possibly even fine tune your methods to protect against needing to actually use your policy. Consider how dangerous your product is, how well-written the instructions and warnings are and how much you test the products before releasing them to the market.
If you don’t already have product liability coverage for the items you sell, talk to your insurance agent right away. Ensure he or she has the experience and reputation necessary to provide the policies you need to run a safe and profitable business.