Whether your business manufactures, distributes, sells, or installs products, your business could be named in a lawsuit if one of those products causes damage or injury. Product liability insurance helps to protect you against liability claims.
When you buy product liability insurance for small business use, you’re protecting your business against accidents caused by a defective product. If a consumer is injured when a product breaks or if a faulty product damages their home, they can sue your business, even if you weren’t aware of the issue.
Product liability coverage helps to pay for resulting claim and lawsuit expenses, including legal costs. It can also help to cover medical bills and property repair expenses for the customer.
While you aren’t required to carry liability insurance for products by law, there are many reasons why it’s a good idea to buy product liability coverage. Retailers, manufacturers, and other businesses involved in the supply chain might require you to carry product liability insurance as a condition of working with your business. This requirement is commonly written into contracts.
Additionally, this insurance can help you protect your business from risks that are out of your control, giving you peace of mind that you won’t have to pay legal fees out of pocket if your business is sued.
The cost of product liability insurance depends on the insurance company, your business size, and the industry your business operates in and the associated level of risk. The best way to find the most affordable product liability insurance is to shop around and compare policies. You can get a free product liability insurance quote today. Then, compare not only your premium costs, but also the coverage limits and exclusions of each policy to decide which is best.
