Product Liability Insurance | Insurance Explained

Your customers expect you to have safe and reliable products, and failing to meet these expectations can lead to huge financial losses. If one of your products harms a customer in any way, they can sue your business, leading to costly legal fees and settlements. While you may do everything in your power to ensure your products are safe, mishaps can still occur without warning. Here are four specific reasons why you need product liability insurance to protect against claims and ensure the longevity of your business. One of the key features of product liability insurance is its coverage for manufacturing or production flaws that cause unsafe defects in the product. Number two, even after product testing and trial runs, potentially dangerous defects can still appear long after production. Product liability insurance can provide coverage for design errors that make goods unsafe for use by the public. Number three, in the event that you fail to provide adequate defect warnings or instructions for using the product, your company can be sued. These claims arise when products are not properly labeled or have warnings that are not explanatory enough to reduce consumer risk while using the product. Product liability insurance helps organizations prepare for and litigate these types of claims. And four, generally there is a limited product liability protection under a CGL policy, yet it may not be enough coverage to adequately protect your business. Product liability policies work alongside your CGL coverage, providing protection against losses caused by malfunctions or defects in your products. Product liability is a complex exposure and managing your risk can be a major undertaking, even if you have access to all the right resources. To supplement your risk management strategies and address specific exposures, speak with an agent at Watkins Insurance Group to review your insurance coverage. We're here to help. Thank you so much for watching our video. If you found this information to be helpful, please click the like button below. We'd really appreciate it. Subscribe to our YouTube channel for new videos where we remove the mystery and frustration about insurance. If you want more information about Watkins Insurance Group or have questions about insurance in general, click the link in the description below. We're here to help.