Product Liability
What is Product Liability insurance?
Creating new products and bringing ideas to life lead to economic growth and competition in the market. However, this core aspect of the industry is regulated by how your products interact with the people around. In the past, major brands have faced huge lawsuits (and penalties) when their products harmed a consumer or member of the public.

Product liability insurance is the solution for these kinds of crises. With proper coverage for product liability included in your insurance pack, you can stop worrying about paying damages on claims you never even thought could arise from use of your product.

Product liability insurance has become a very common type of commercial insurance, often mandatory for many types of production. Whether you are the manufacturer of the product or the retailer selling it, you can expect to be held liable for any injury or damages that product causes. While it is often included in the general liability policy you get, product liability insurance is sometimes bought separately, especially if you manufacture or sell a product with extraordinary specifications.
Who needs a Product Liability insurance policy?
While major brands have been highlighted in the media for their need to get an extensive product liability insurance policy, any insurance expert you talk to will say you need one too if you manufacture or even just sell a tangible product.

In this day and age, dragging a person or business into a lawsuit is quite easy. If a product causes even little harm to somebody, they can easily file a lawsuit with substantial damages, and the manufacturer and the seller both have to deal with the situation with appropriate legal help.

With comprehensive product liability insurance, you get cover from paying for these damages instead of stopping your business activities to pay out of your pocket.

Even if you do not have to deal with any major third-party injury claims for your products, you should get proper product liability coverage for the small claims you frequently settle out of your profits.
Product Liability insurance coverage
To get proper product liability insurance coverage, you need to talk to an insurance agency whose interests align with those of your business. As an independent insurance agency, we work with our nationwide network of carriers to get our customers customized insurance policies that cover their business specific risks and ensure all claims of our customers are fairly settled by the carrier. We work for you, not for them.
What does Product Liability insurance cover?
Product liability insurance coverage comes with peace of mind for manufacturing and retail businesses. However, the effectiveness of your liability cover depends on the thoroughness of your insurance policy. A lot of businesses simply rely on the product liability sub-clause in their general liability policy built for generic coverage and believe they are fully covered for all kinds of third-party damages claims.

In truth, relying on generic insurance policies can get your business in trouble in the most unexpected ways. When an angry customer seeks an attorney to file a lawsuit for product liability, the lawyer will find every possible loophole in your product literature to stipulate as big a demand for damages as possible.

Whether you are a big business or a small one, instead of relying on the prowess of expensive litigators, you should use a pre-emptive approach and get your business comprehensive product liability insurance coverage.
Typical areas of Product Liability coverage
You can expect to run into product liability claims unexpectedly. Understanding the scenarios where your product liability cover will come into play can help understand when these situations could be like. Here is a short list of the most common product liability claims recorded:
  • A batch of dairy products is exposed to unwanted substances during production and results in causing stomach pain to customers.
  • A brand's skateboard design causes titled movement, resulting in customers falling off and getting hurt.
  • A cosmetics manufacturer does not include proper warning details for some of the ingredients that often cause allergies, affecting many customers.
These are just some of the common reasons why retailers and manufacturers face frequent product liability claims. Depending on the nature of your business,you may require a different scope of coverage than other businesses.You can only get comprehensive product liability insurance coverage if your insurance agency understands the nature of your business risks thoroughly.

At Ficke Insurance, we work together with your country-wide network of insurance carriers to provide our customers insurance policies that give them proper coverage for specific risks they face. For product liability policies, we make sure to include each client's relevant risks. This allows us to deliver better quality of services than other agencies and enables our customers to focus on their business activities instead of worrying about damage claims.

To get more information about what your insurance policies should look like, contact one of our agents right now.