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 Products-Liability-Insurance.com 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.