As a manufacturer, distributor, retailer or supplier of goods, you have a huge responsibility to ensure the quality and safety of your product, as you can fall prey to complaints and lawsuits. If you need to either protect yourself as a business or protect your product from any legal claims, the one way you can do this is by purchasing product liability insurance. If you wonder what good a plan like this can do and what benefits this insurance has to offer, the following are some details to help you determine if this is indeed the right plan for you.
Product liability insurance covers you, or any product your company manufactures or distributes that is either used or consumed by a customer and may potentially have defects or flaws. Common products that can affect the general public are cars, food, clothes, toys, tools, equipment and even medicine. A perfect example is in the automotive industry where due to an issue with a particular model there has to be a recall. Sometimes it’s impossible to foresee what problems can result from a malfunction, and if anyone is harmed and lawsuits occur, you can save yourself literally millions in legal and medical fees.
Sometimes the issue is not with the product itself, but with the packaging of the product. Even when you use warning signs that state packaging materials are not toys, you never know what can happen if someone, more than likely a child, disregards those warnings. With product liability insurance you would be covered if sued for not providing adequate warning labels. Nobody is perfect. And as a business, problems can occur that are out of your control and can potentially put you out of business. With the right insurance, you can save yourself a fortune and use your resources to make a bad situation better.
With a product-based business comes a lot of responsibility. And with so many variables to keep track of, product liability insurance offers just the protection you need. The more people your product affects, the greater the risk, and therefore the more coverage you should have. This is not an area to cut corners. With all the time and effort you put into the product itself, it only makes sense to protect your investment. Fortunately, there are many insurance options that exist to help you during these emergencies, while giving you and your company the time it needs to recover from a setback.
If you’re in business and you’re not planning for small business liability insurance [http://www.self-employed-liability-insurance.com/self-employed-liability-insurance-a-safety-net-for-business-owners/], you are missing out on one of the single most important steps you can take to protect yourself and your assets. Ready to get started?