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.