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How a Product Liability Insurance Policy Could Save Your Company

For any product vendors or product manufacturers having adequate business product liability negligence insurance could save your company in the event of a lawsuit involving product defects or omissions. It is an important part of your overall business insurance, and there are many reasons why it should be included in your insurance coverage.

If someone is injured while using your product, and the damage results from breakage, improper use that was not warned against in labeling, or the product failed to do what it was supposed to do and that caused injury, you could wind up in court defending your business. A judgment against your business could take away all you have worked hard to create.

Products are subject to errors an defects, even in the best of quality control situations. It is essential to have product liability insurance to protect your business from the inevitable occurrence of a problem with the product. If, for example, you produce a part for an automobile, and failure of that particular part results in an accident –

.. you could be sued for product liability defects and errors by any of the persons involved who experienced damage from that accident

Under personal injury law, product defect is something that is always looked for in vehicle accidents.

Product liability is tied into negligence during production. If an employee misses a step, makes a wrong formula, or even is just plain careless, the result could be a defective product. When that product fails, it may cause injury to a person, and that person can then follow up with legal procedures in court to collect compensation for damages. If a jury trial is involved, damage claims and awards can be very high, because a jury can also levy punitive damages. Punitive damages are intended to send a message to others to be careful not to make the same mistakes in the future.

Getting proper liability insurance and enough of it, can save your company from financial disaster. It is prudent to carry such coverage, even though your relationship and ties to any later accident may be far fetched. It is up to the attorneys to look at everything possible as causing accidents, and if your product is involved in any way, you could be subject to the lawsuit process. You invest a lot into your company, do not allow a lapse or omission of liability insurance coverage to destroy all your hard work.

How to Know If Your Business Needs Product Indemnity Insurance

Liability is not a word many sellers and manufacturers like to use or hear in a sentence containing one or more of their products. However, like it or not, product liability is major theme that, whether you make, sell, or lease a product, you should be well aware of. Unfortunately, somewhere along the way in your business, more likely than not, you will be found liable for an injury caused by a product that your business sells to the public.

Having adequate defective products indemnity insurance coverage is essential to anyone who distributes products (whether you make, sell, or lease them does not matter). There are basically two types of product liability. Understanding these will not only help you in realizing why you need product liability insurance, but also help you prevent any future insurance claims. The first type of product liability is that based on fault. If a person is injured by a product because the product was misrepresented to that person, such as omitting to disclose a defect about the product, the distributor of that product can be held liable for intentional misrepresentation or fraud. If the product is assembled incorrectly, the product failed to be tested, or failures of due care are committed by the distributor of the product, that person can be held liable through an action of negligence.

The second type of product liability indemnity is that which is based on strict liability. Strict liability is a somewhat more advanced topic, as it applies liability without fault. It is under this type of product liability, for instance, that a product would fall if there a defect that results from inadequate instructions. Questions concerning strict liability and its implications on your product would be best left to an attorney to answer on a one on one basis. Regardless, hopefully this small introduction about product liability does help express the magnitude of product liability. Product liability is applicable to every product manufactured, sold, or leased. Therefore, product liability insurance at essential to all those who distribute products.

How Having Indemnity in Products Liability Could Save Your Business

Whether it’s a small business producing hand made children’s toys or an international manufacturing conglomerate, any business, regardless of size or product manufactured, is at serious risk if it does not have product liability insurance.

If your business is involved in any way in the process of manufacturing a product – whether you are a supplier, the actual manufacturer, or a retailer, it is important that you obtain this insurance.

You may say to yourself – I’m a responsible businessman, I produce a safe product, why would I waste money on this type of insurance?

The answer is simple: while you may be responsible, your consumer may not.

There are several ways in which a business can be subject to legal action or civil suits with regards to its products. The product may be defective and cause harm to the customer. Even if the business had no knowledge of the defect it may still be held responsible. A consumer may use the product in a way other than it is intended. Even though the consumer used the product in a way other than what the business intended they can still be held responsible if they did not expressly advise the customer through a label or warning in the instruction manual that the product is not to be used in that manner. Even if the consumer has no actual standing to make a claim against your business – frivolous lawsuits are filed, and even if the business is not ultimately held responsible the legal fees incurred during the process can be crippling.

Depending on the size of your business and the amount you sell each years premiums cost to obtain products insurance coverage for liability security may vary. But insurance of any kind is a trade off – you may pay a high premium, but you may be saving yourself much more money (and even your business) in the long run by obtaining product liability insurance.

Product Manufacturer Liability Insurance Explained

The lawsuits are more widely found than the epidemics in today’s society. All the companies of insurance are generally realizing the increasing requirement of the insurance policies to overcome the liabilities and coverage against the problems of corporate organizations. The insurance which protects the property, and the business is the product liability insurance. It gives protection from any of the problems that arise like a manufacture defect, product default or any other issue like food, medicine, etc.

Product liability is of different types- If the manufacturing industries do not check and test their products to ensure that it is reliable and safe for consumption, then such an insurance company is responsible and liable for any of the damage that may occur due to the product. Product liability issues are occurring due to this reason, and this is the most feared topic, and it includes all the consumers.

It is vital to select the right insurance policy. If you want to purchase good liability insurance plan for your company, then you must keep in mind few points, which are as follows:

  • Try to Get Some Quotations: This has proven to be a very useful act, as it reflects your business concerns and devotion. Moreover, it widens your options, and you can comfortably go for the right one.
  • Do Consult An Insurance Expert: Whether you have a small business or deal with a huge one, it is quite unusual to select a good insurance firm offering a appropriate premium plan without getting an expert’s advice. Taking insurance agent’s guidelines makes you to choose the best suitable and affordable product manufacturing policy, which ultimately leads you towards a flourishing business.

If you sell products, or are a product manufacturer or distributor, you should take product liability serious.  Getting coverage now is the only way to protect yourself and your business when hit with a legal claim.  For more information Visit SADLER at and look at the different type of policies available and choose what is best for your type of business.

The Proper Dressing for Businesses Using Product Liability Insurance

By and large, it is customary for business owners to choose general liability insurance as it is the most widespread form of business insurance. Furthermore, most believe that general liability insurance will adequately protect their establishment against legal ramifications.

Although, this belief has substance, it would behoove business owners to examine and compare variations of coverage provided by both general liability insurance and product malfunction liability insurance.

As a rule, general liability insurance encompasses extensive topics involving legal responsibility as well as some degree of product liability. However, it fails to include any type of professional indemnity coverage; that is lawsuits. In the same way, product liability insurance weighs in the probabilities and risks that will have an adverse effect on their business.

Thus, product liability insurance is fashioned to save the product-based businesses against legal proceedings and claims of injury or damage to property evolving from the use of alleged defective products.

Consequently, business owners should incorporate product liability insurance into their insurance portfolio. Most importantly, product liability insurance acts as a shield or proper dressing of protection for business owners who markets, delivers, or engages in the transaction sequence of merchandise.

In view of that, small business owners should reflect on potential financial drawbacks and harm to their establishments if they fail to secure product liability insurance coverage.

Getting coverage is easy – just contact SADLER for a quick online quote. The benefits of coverage surely outweigh the consequences. The risks are insurmountable but not without a viable resolution.

What Falls Under Your Product Liability Insurance Coverage Policy?

It is not advisable for you to get product liability insurance coverage for your products and then proceed to fold your arms and leave it at that; as if you haven’t a care in the world. Insurance policies exist to protect you against financial losses associated with defects beyond your control, but they do NOT absolve you of the duty of care you owe your consumers to do all you can to ensure they can safely use your product.

Insurance policies only cover damages resulting from defects that were bound to escape detection by quality control.

Coverable costs do not only include punitive damages awarded to plaintiffs; they also go further to include all legal expenses used in the business’s defense. Financial costs that arise where the quality of product concerned is found to be below industry, or generally accepted standards, do not fall under product liability insurance coverage.

Before issuing your business product liability insurance coverage it is customary practice for an insurance company to run checks on your production processes, human resources, and equipment to ensure they are up to standard. So you might not be able to even get any insurance at all if your products are your business is not acting in accordance with good standard practice.

Learn more about product liability insurance, from SADLER If the insurance company can prove that the defect in question was caused in any way by avoidable negligence on your part, you will find yourself on your own; the insurance company reserves the right not to cover your losses if such is the case.

The Advantages of Product Liability Solutions to Protect Your Business

The most important aspect of product liability insurance is the ‘product.’ This type of product insurance covers damage claims made by people who have suffered losses or have been harmed by the faults of a product. Thus, having a product defect problem could lead to litigation so it would be very important to have product umbrella liability insurance. It is important not to confuse “faulty” and “flawed.” Indeed, a defective product is one that does not allow the use that could be expected of it (e.g. a TV that does not display an image). This type of product is not covered by the Product Liability Act. Defective products are those which have a security breach (e.g. an imploding TV). The scope is big for people too. People affected by this Act are specifically designated.

The victims are protected under product liability. If they claim for damages, the product liability insurance can protect you. The Civil Code expressly excludes all distinctions between contractors and third parties. The product manufacturer is necessarily a professional who has worked on the raw material, component, or part of the product. Only the latter is in principle, liable for damage caused by a defect in his product. However, if it cannot be identified, then it can involve an equally responsible supplier, or seller. The enlargement of the range of leaders is in the interest of the victims. It is not necessary to distinguish whether the head is linked to the victim on the basis of a contract. The product manufacturer liability insurance applies to both the contractual field and tort.

The scope of product liability insurance is important with respect to time. To fall within the scope of the law, the product must have been in circulation after 1998.

The circulation results in two characters:

  •  The producer was taken off the product
  • The product is offered for sale or any other form of distribution

In 2006, the USA civil law gave a definition of commissioning of a product. This is the stage where “the product leaves the manufacturing process and enters the marketing process.” This definition is important for product liability insurance. The law provides two deadlines for action beyond which product liability can no longer act:

  • The limitation period: The law imposes a period of three years after the date on which the claimant knew or should have known about the damage, the defect and the identity of the producer. Beyond this period, the product liability insurance does not come into the picture.
  • The marketing-related period: the victim cannot act against the producer beyond 10 years after the release of the product. If the damage occurs within that 10 years, then the action against the victim is prescribed by three years from the day he became aware of the lack of security. According to the Civil Code, the product is put into circulation when the producer is relinquished voluntarily. A product is the subject of a single release.

The law has some evidence requirements to identify the specific faults of the manufacturer. Therefore, the manager cannot avoid liability by showing that he has committed no fault. He can no longer avoid liability by showing that the product was produced within the rules of art, or in accordance with requirements. It is therefore, not an accountability system based on fault. The manager can get product liability insurance too.

The Advantages of Having a Comercial Liability Policy for any Product Business

Many businesses sell products that meet the needs of people. Whether its an appliance, a vehicle or even an electronics product, there is much demand for various products. When selling products it is very important that they include things such as a warranty and return policy. However there is another thing that is just as important. This important provision of products is liability insurance. Product liability insurance is a type of insurance policy that provides protection for the seller of the product.

There are some good reasons why product liability insurance for small business is something all business owners should consider. One of the advantages of product liability insurance is simply protection from liability. In case a product is sold and has the potential to be hazardous, a company selling it can avoid costly consequences in case a customer is injured from it in some way.

Another advantage for product liability insurance is that it can provide an additional warranty. In case someone finds the product defective, the company can avoid a potential lawsuit or accusation of misrepresentation. So having this type of insurance policy can provide additional accommodation for customers.

A third advantage of product liability insurance is that it can help ensure that the product is safe and meets the customers’ needs. If there is a situation where the product doesn’t work the seller will be able to cover this situation by making sure that it is repaired and works properly.

As a result of these advantages, having product liability insurance is very beneficial for many businesses that sell products, especially ones that can be potentially hazardous.

What Product Liability Coverage Could Mean to You and Your Company

Lawsuits affect many companies and can use a lot of valuable time and money. One way to battle these unnecessary costs is through product liability insurance. Product liability insurance can help a company in many different situations that come up for most business of any significant size.

If your company creates and sells products with care then there should be some sort of assurance that the situations that arise due to negligence or ignorance won’t end up costing the company extra money and time.

People may not believe that lawsuits or disagreements will come up, but having product liability insurance allows people to live with a peace of mind that problems should be taken care of easily and without worry. A disagreement over a product’s exact capabilities or if a person were to hurt themselves using the product wrongly should not turn into the major problem that they can be.

Product liability coverage will cover many areas that general insurance doesn’t and that you may feel that you already covered for. So if the profits and success or your company is a concern than look into insurance for product liability as soon as possible.

A Look at Advantages of Having a Builders Risk Insurance Policy

Building Construction Worker at Construction SiteIt is vital for all real estate developers to take measures that will protect them from potential problems that may occur during the phase of a project. This is the primary reason why leading commercial real estate experts encourage developers to get a Builders Risk Insurance Policy for their construction projects.

Let’s Take a Close Look at Two Advantages of Having a Builders Risk Insurance Policy

1. The Risk of Vandalism To Property

There is always a chance for vandalism to take place on the premises of a big commercial project. Damage from the activity of vandals can put a big dent in a project’s budget. Fortunately, a project can be protected with the aid of Builders Risk Insurance Coverage. The policy will cover all costs to repair the damage caused by vandals.

2. The Risk of Theft at The Property

Theft can also take place on the premises of a big commercial property. Tools, expensive machinery, and materials are normally targeted by thieves. These items can be replaced free of cost if one has Builder’s Risk Insurance Policy.

It is vital for all real estate developers to take steps that will protect them from potential problems that could occur during the phase of the project.  This is why applying for a contractor insurance quote is important. Commercial projects are always prone to theft and vandalism. A risk insurance policy for builders is designed to protect developers from any losses that are associated with these two acts of crime. This is the main reason why it is heavily endorsed by many leading commercial real estate experts. One can easily preserve thousands or millions of dollars if he or she purchases this policy.

When working in construction you should always be aware of safety and the risks around the job site. For more information on how you protect yourself as a contractor visit the Worker Safety Series published by OSHA.