Any product you manufacture, distribute or sell has the potential to create the risk of a product liability claim. Product liability insurance covers the costs of the liability of a producer for causing damage, either bodily or to property.
Controlling the exposures and costs of product liability claims is a primary concern for many businesses today. There are many exposures covered under Products Liability Insurance. We wanted to identify a few of the most important ones:
Manufacturing Defects - Claims or losses involving the flaws in the production process that cause injury or loss to the user.
Design Defect - Involves flaws in the design that cause a loss. Do you remember the Ford Pinto cases in the 1970s? There was a design flaw in the gas tank, which caused the tank to explode if the car was rear-ended.
Defective Warning - This involves improper product labeling and warnings. The McDonald's "coffee case" is an example of a lack of warning.
When looking to acquire quality coverage, it is important to choose an insurer who knows the business and helps cover all the gaps that they find left in another company’s policy.