Benefits of Product Liability Insurance

| August 14, 2018

Your customers expect you to have safe and reliable products, and failing to meet these expectations
can lead to huge financial losses. If one of your products harms a customer in any way, they can sue
your business, leading to costly legal fees and settlements. These costs can easily reach six figures.
While you may do everything in your power to ensure your products are safe, mishaps can still occur
without warning. That's why, to protect against claims and ensure the longevity of your business,
you need product liability insurance.

Coverage for manufacturing or production flaws. One of the key features of product liabi lity insurance
is its coverage for manufacturing or production flaws that cause unsafe defects in the product.

Protection against design defects. Even after product testing and t rial runs. potent ially dangerous
defects can still appear long after production. Product liability insurance can provide coverage for design
errors that make goods unsafe for use by the public.

Response for packaging and warning issues. In the event that you fail to provide adequate defect
warnings or instructions for using the product your company can be sued. These claims arise when
products are not properly labeled or have warnings that are not explanatory enough to reduce
consumer risks while using the product. Product liability insurance helps organizations prepare for and
litigate these types of claims.

Supplemental commercial general liability (CGL) coverage. Generally, there is limited product liability
protection under a CGL policy, yet it may not be enough coverage to adequately protect your business.
Product liability policies work alongside CGL coverage, providing protection against losses caused by
malfunctions or defects in your products.

Want to Learn More About Product Liability Insurance?
Product liability is a complex exposure, and managing your risk can be a major undertaking- even if you
have access to all the right resources. To supplement your risk management strategies and address specific
exposures, contact us today.