A product Liability Insurance is a kind of insurance policy that is recommendable and a must-have not only for companies that manufacture products since product liability insurance had to do with the manufacturing, distribution, handling, and even disposition of a particular product. This article focuses on everything you need to know about product liability insurance. Read on. Meanwhile, get here for your General Liability Insurance.
Product Liability Insurance; Everything you need to know.
Manufacturing, resale, import, and export companies of products that lack product liability insurance stand to lose absolutely everything. Agreed, no one exactly hopes for damaged goods causing injury to the owner, but to deny the fact that it exists is sheer irresponsibility.
Companies often enroll themselves in product liability insurance amongst other forms of insurance because it covers a wide range of damages resulting from the manufacturing or distribution or resale of a particular product,
This denotes that a lot of people in the business chain line require product liability insurance and not just the manufacturer alone.
Facts and points to note about a product liability insurance include;
- How long can damages be collected on a product?
- What are the costs of product liability insurance?
- What does product liability insurance cover
- Is it worth it?
- Who Needs a Product Liability Insurance
How Long Can Damages Be Collected on A Product defect?
Damages on a product liability insurance can be claimed by the recipient for up to three years and even longer in some regions. The claim for damages often differ as per the damage caused to the recipient, but then it can always be contested
What is The Cost of Product Liability Insurance?
For smaller business, product liability insurance is pretty affordable. Often, product liability insurance is not exactly standoffish, but where it is, it is usually pegged at a few thousand dollars. The exact amount is often determined by how large the business is, whether you handing the manufacturing or distribution of the products etc.
What Does a Product Liability Insurance Cover?
A product liability insurance covers two main kinds of damages and these include;
- Bodily damage as a result of defective products and,
- Property damage as a result of the defective product.
On a wider scale, a product liability insurance policy of a manufacturer could cover the Product liability insurance of retailers or importers and exporters. As a retailer of manufactured goods, if you are seeking to skip enrolling in a product liability insurance policy, you should check if the product liability insurance policy of the manufacturer covers yours also.
If it does, before going into business with the company, you should obtain a copy of the company’s policy.
Product Liability Insurance; is it worth it?
Every kind of insurance is worth it. Especially product liability insurance. Accidents are bound to happen at a point in time. Product Liability Insurance covers your business and protects against all forms of legal fees, compensations et cetera that would otherwise cause a strain in the finances of your company.
Who Needs a Product Liability Insurance?
Product Liability covers a wide range of damages resulting from the manufacturing or distribution or resale of a particular product, this implies that damages may be claimed from the manufacturer, the importer or exporter, and even the retailer.
Anyone involved in the manufacturing, resale, repair, or distribution of a particular product requires a product liability insurance
Conclusion;
Insurances are always worth it for even the smallest of business, now that you understand how the product liability insurance works, you can go ahead to enroll your business in one through the help of a trusted agent.
