Who Needs Product Liability Insurance?

A product of any kind has the potential to expose businesses to a claim or lawsuit, especially the business that produces the product.  Companies need complete liability coverage to ensure they are covered against false claims.  Product liability insurance covers the costs of the liability of a producer for causing damage, either bodily or to property.  This additional coverage helps cover those who ship a product of any kind, those who sell the products, or others involved in manufacturing and production.   No matter whether the company makes heavy machinery or artisanal snacks, a skilled agent knows which product liability insurance limits and coverages to offer.

Risks for Businesses

A products liability policy handles risk that the producer may not have even considered.  Of course, standard risks apply, such as defective products or incomplete warning labels.  If a product causes someone  injury or damage to their property, they can press for compensation.  However, products liability insurance is created to cover those instances.  Those without it will find that they lack the coverage needed to stay protected. 

This applies also to slander or libel cases when a disgruntled customer begins to spread unsavory information about a company or seller.  The reports may be technically illegal, but enforcing these guidelines, especially online, can be expensive.  A solid liability policy handles those costs, enabling the company to keep operating and ensures their reputation goes unscathed. 

Risk does not fall solely on the manufacturer. Whoever sells a product made by a third party can become entangled in the same lawsuit.  So, purchasing a solid product liability policy covers the seller as well.  If there is any risk at all that someone could get hurt or something could be damaged, then this kind of coverage is needed.

How Does Product Liability Relate to General Liability?

Usually, a general liability policy contains a product liability section.  This covers any risk that is incurred under the normal course of business.  However, some companies find that their coverage does not reach the products they produce because of certain dangers or past history.  Therefore, supplemental coverage is needed. 

It is also possible to increase the coverage for the product under a general policy if the manufacturer or seller feels that it would be important.  The type of business, where it is located, and other factors determine rates.  A business with any particular questions pertaining to products liability insurance finds it comforting when a knowledgeable agent has the answers.

Quality Coverage

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.  Arroyo Insurance has an experienced, knowledgeable team that can tailor a policy to any company’s needs, including product recall and special products that might not be covered generally.  Visit arroyoins.com to learn more.

About Arroyo Insurance Services

Arroyo Insurance Services was officially established in 1986, but we have roots dating back to before 1950. One of California’s leading client-oriented and independently owned agencies, we have over 140 employees with a combined experience of over 450 years, spread across 11 locations. We are committed to providing the best insurance and risk management services at the most competitive premiums, and backing it with hands-on service tailored to our customers’ needs. For more information on how we can mitigate your risks, contact us today at (877) 220-4769.