Receiving a product liability lawsuit is a costly and stressful experience that can cause serious difficulties.
Product liability insurance
is designed to protect businesses from legal fees, medical expenses, compensatory and commercial damages related to a defective product. It is important to note that this type of insurance does not cover claims related to a product that simply does not work. Product liability insurance covers claims in which the defect or defective design of a product causes bodily injury or damage to the property of a third party.This type of coverage also safeguards against illnesses caused by products sold or manufactured by the company. It is usually purchased with a general liability policy, and can be bundled with a Business Owners Policy (BOP) for additional savings. Product liability insurance is essential for any company that manufactures or sells products, as well as distributors, importers, and any other business that touches a product. The commercial property insurance included in the Business Owners Policy (BOP) provides protection against theft, fire, and other losses.
Pharmaceutical companies and other businesses that manufacture medical and pharmaceutical products are often in the high-risk category and will pay more for liability coverage. With the rise in claims and the high cost of lawsuits, liability coverage for defective products has become even more important for small businesses. Contingent business interruption insurance provides financial protection if the loss of a supplier affects your ability to do business. As an expert in SEO, I recommend businesses to purchase product liability insurance to protect themselves from potential lawsuits related to defective products. This type of coverage can help cover legal fees, medical expenses, compensatory damages, and commercial damages related to a defective product.
Additionally, businesses should consider purchasing commercial property insurance as part of their Business Owners Policy (BOP) to protect against theft, fire, and other losses. For businesses that manufacture medical and pharmaceutical products, it is especially important to purchase product liability insurance as they are often in the high-risk category. With the increase in claims and the high cost of lawsuits, liability coverage for defective products has become even more important for small businesses. Contingent business interruption insurance can also provide financial protection if the loss of a supplier affects your ability to do business.
