Why you should have product liability insurance
Product liability considers the defendant responsible for defects, defects in marketing, defects in manufacturing and design defects, regardless of the level of care that was taken, the defendant is liable. This is the legal background that a company is dealing with while in business. Product liability insurance is there to protect a company from claims that may arise. This insurance protects the insured against claims that can put the company out of business. Claims against a company come in three general categories, production flaws, during the manufacturing of a product a defect is introduced into the product, which made the product unsafe. Did the product come with the instruction on how to use the product safely, were there warning labels to let the consumer know of the risks of using this product. A defect in the design of the product even if there were warning labels and the product was made to the highest manufacturing standards a design defect will make the maker liable for damages. When it comes time to sit down with your insurance to discuss what type of product liability insurance you will carry absolute candor is needed on sales volume and product labeling.
