A guide to product liability insurance for manufacturers
Have you ever stopped to consider the risks that come with producing and distributing products for not only manufacturers, but for your customers as well? Without product liability insurance in place, consequences from defective products could prove costly for your business.
Below, we outline the importance of product liability coverage, as well as how Thomas Carroll can assist you in securing the right coverage to protect your business. Read on to learn more.
What is product liability insurance and how does it protect manufacturers?
Product liability insurance is coverage aimed to protect manufacturers, distributors, and retailers from financial loss in the event of a defective product. If a product harms or injures a consumer, the manufacturer could be held liable for damages even if your business did not manufacture the product. Product liability insurance can help to cover these costs. It is advised to consider product liability insurance if your business designs a product or sells it.
When do claims arise?
It is vital to recognise the risks that come with making and distributing products. A defect can arise during the production of a manufactured product and design flaws can cause products to become inherently dangerous.
Furthermore, mistakes when labelling or marketing products can also lead to a consumer using products incorrectly, and therefore risk getting hurt. This can result in a product liability claim and your business being held legally responsible. You could be held liable if the name of your business is on the product, or if your business plays a part in repairing, refurbishing or changing a product. It is worth noting you can be held liable after your manufacturing business has closed down too.
How can coverage protect you?
Having coverage does not only offer peace of mind to manufacturers, but distributors and retailers too. Having the right coverage can protect your business against the financial loss that comes from defective products. In addition, this can boost your reputation and protect your business from negative publicity. Support is available at Thomas Carroll to help you with the right product liability insurance. This will protect you from multiple risks, including manufacturing defects and mistakes in marketing. This way, you can ensure your business is protected.
