Do you need product liability coverage?

Do you need product liability coverage?

Sometimes you just have to stop and marvel at some of the new inventions and the many types of products manufactured round the world these days. Where would we be without the invention of the humble light bulb, the automobile, dish washing soap, the washing machine and numerous other inventions and products? Many of these products make life so much easier for us. However, if you are a manufacturer releasing a new product, you might wonder what might happen if there was a problem with your product such as a defect that caused harm to a consumer. For such instances it’s important to protect your company financially with California business insurance.

When setting up your insurance for your business, talk to your insurance agent about product liability coverage if you manufacture or sell products, in case of harm or injuries caused to those who use the products. Three of the most common types of product problems include design defects, manufacturing defects or that the company fails to warn consumers of a defect in a product. Liability issues may arise because the product label does not provide a warning or it provides insufficient instructions for use. In some instances the label may be fine, but the consumer uses the product incorrectly. Product recalls are another example of problems that could have liability ramifications.

Talk to your insurance agent about adding product liability coverage to your California business insurance in case of claims for costs and damages due to problems with your products. For more information on business liability or other types of coverage, contact our team of agents.


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