Every day, we rely on products to make our lives easier. We use them at home, work, and when we’re out and about. But what happens when those products cause us harm? Are we able to hold the manufacturer or seller responsible? For many people, the answer is yes – product liability insurance can help you recover compensation for any injuries or damages caused by a defective product. Read on to learn more about what is and isn’t covered by this type of insurance.
What Is Product Liability Insurance?
Product liability insurance is a type of coverage that protects businesses from financial losses related to injuries or damages caused by their products. This includes anything from physical injuries to property damage. If a customer sues your company for damages, product liability insurance can help cover the costs of your legal defense and any settlements or judgments against you.
What Does Product Liability Insurance Cover?
Here are some of the most common types of claims that are covered by product liability insurance.
1. Injuries Caused By Defective Products
When a product is defective, it can cause serious injuries to the people who use it. Suppose you’re sued for damages caused by a defective product. In that case, product liability insurance can help cover the costs of your legal defense and any settlements or judgments against you.
2. Damages Caused By Defective Products
In addition to injuries, defective products can also cause property damage. If you’re sued for damages caused by a defective product, product liability insurance can help cover the costs of your legal defense and any settlements or judgments against you.
3. False Advertising Claims
If you’re accused of false advertising, product liability insurance can help cover the costs of your legal defense and any settlements or judgments against you. Regarding product liability insurance, coverage is essential to meet your specific needs. Be sure to talk to your insurance agent or broker about the right coverage for your business.
4. Product Recalls
If the manufacturer recalls a product you sell, product liability insurance can help cover the costs of your legal defense and any settlements or judgments against you.
What Does Product Liability Insurance Not Cover?
Product liability insurance does not cover every type of claim that could be made against your business. Here are some examples of claims that are not typically covered by product liability insurance:
1. Products That Are Not Defective
If a product is not defective, product liability insurance will not cover any damages or injuries that it causes. For example, if a customer is injured by a product that is not defective, the customer would not be able to sue your company and collect damages.
2. Products That Are Not Covered By Your Policy
If your product liability insurance policy does not cover a product, it will not cover any damages or injuries it causes. Be sure to talk to your insurance agent or broker about the types of products covered by your policy.
3. Claims That Are Not Related To Products
Product liability insurance will not cover the claim if a customer sues your company for something unrelated to a product. For example, if a customer slips and falls in your store, the customer would not be able to sue your company and collect damages under a product liability policy.
Product liability insurance can be valuable coverage for businesses that sell products. Talk to your insurance agent or broker if you have any questions about what is and isn’t covered by your policy. They will be able to help you understand your coverage and make sure you have the protection you need.
