Tulsa and Muskogee: 800.259.4677 | OKC: 800.699.5905 | After HRS: 866-292-0953


Business Insurance BUSINESS

Discover the perfect insurance options to meet your unique needs.

Read More
Workers Compensation Insurance WORKERS COMP

Finding insurance doesn't have to be difficult. We do the work for you.

Read More
Auto Insurance AUTO

Insurance that protects you against financial loss with accidents.

Read More
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Life Insurance LIFE

Browse a variety of insurance options in order to find the right one for you.

Read More
Health Insurance HEALTH

Learn about different health coverage options that fit your needs.

Read More

One type of business insurance that is often necessary is product liability insurance. Below, we will discuss this type of insurance and help you decide if it may be right for you.Manufacturing Line

What Is Product Liability Insurance?

Product liability insurance covers you and your business in the event someone sues you for problems relating to a product your business interacts with. That is, if your business designs, produces, alters, and/or sells a product, there is the potential that someone or some entity may sue your business over that product for causing property damage and/or personal injury.

Here’s an example:

Let’s say your business manufactures and sells curling irons. Naturally, these irons get quite hot in order to function properly. A buyer of one of your curling irons burns themselves severely on the arm when using your product. As a result, they sue your company for their severe burns.

In this case, if your company had product liability insurance, the coverage would protect you by paying for the cost of defending the customer claim.

What Exactly Does Product Liability Insurance Cover?

It’s important to note that claimants (those suing) can only win a product liability lawsuit if they can prove that your product is defective in some way.

There are three types of defects that product liability insurance will provide coverage for:

  • Design defects
  • Marketing defects
  • Manufacturing defects

The insurance will pay for the legal fees associated with these claims or any payouts that you may be liable to pay if you lose a case. Of course, you’ll need to have an adequate amount of coverage in order to cover all these costs.

  • Product liability insurance does not cover:
  • Product recall costs
  • Professional negligence
  • Slips and falls
  • Lost inventory
  • Worker injuries

Does Your Business Require Product Liability Insurance?

Any business who is part of the design, production (manufacture), alteration, or sale of products — no matter what type — should have product liability insurance. The amount of coverage you need may depend on exactly what the product is and how involved with it your company is (for example, whether you design, manufacture, and sell the product or just sell the product).

The very best way to know for sure if your company should have product liability insurance is to speak with a business insurance agency and explain what role your business has.

Also Read: Do I need Business Insurance To Start A Company 

Posted 7:46 PM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015

View Mobile Version
© Copyright. All rights reserved.
Powered by Insurance Website Builder