{"id":3765,"date":"2023-10-31T11:14:08","date_gmt":"2023-10-31T11:14:08","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=3765"},"modified":"2023-10-31T11:14:11","modified_gmt":"2023-10-31T11:14:11","slug":"products-liability-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/business-insurance\/products-liability-insurance\/","title":{"rendered":"Products Liability Insurance: Definition, Coverage & Who Needs It"},"content":{"rendered":"
When you sell a product, you run the risk of someone getting hurt or having their property damaged. If this happens, you may need product liability insurance, which is a sort of business insurance that may help pay for compensation claims. Even if you didn’t make the goods, you could be held responsible in some cases. Furthermore, this article will tell you what product liability insurance is, the coverage, the cost, aviation products liability insurance, and public products liability insurance.<\/p>
Product liability insurance is more than just a guarantee or warranty on a product. It shields enterprises from the consequences of a product causing harm or other damage to third parties.<\/p>
The incorrect manufacture, promotion, or use of a product can cause harm to people. Even if a product is used inappropriately, your company may be held liable for any damage that ensues.<\/p>
It is your company’s responsibility to make things right. Product liability insurance can assist in protecting your company in the case of a lawsuit. There were 58,496 personal injury\/product liability cases in 2014, a 20% increase over 2013. According to one law firm, the average jury payout in product liability litigation in 2012 was $3,439,035, with a median payment of $1,503,339.20. With the rise in claims and the high expense of lawsuits, product liability insurance is becoming increasingly vital for small businesses.<\/p>
If your company sells products to clients, a flaw could result in injury or harm to someone else’s property. Assume a customer buys a power tool that your business produces. A flaw in the tool causes the consumer to be injured, and they sue your company. Product liability insurance is part of a larger liability insurance package that can aid with things like:<\/p>
You would have to pay these charges out of pocket if you didn’t have this coverage. Not every company has the financial resources to address product liability litigation.<\/p>