Product Liability Insurance

Product Liability Insurance provides your business with financial and legal cost protection. Product liability covers goods that you make available to the public directly or indirectly for consumption or use.  Throughout the distribution chain ; design, components, assembly, manufacturer, wholesaler, transporter, distributor and retailer have product liability risk. 

What Does Product Liability Insurance Cover?check mark withframe

Product Liability Insurance policy’s  will provides coverage against an accusation and potential claim resulting from damage to property or personal injury that your product caused.  Additionally may  provide coverage against unforeseen circumstances, such as defects in your products that may have not been identifiable.  This coverage should be available even if your business is negligent, subject to certain policy exclusions like intentional acts and deliberate wrongdoing. Product liability coverage will take care of most judgments that could be entered against you up to the policy limit less any deductibles or retention requirements. Most importantly, should pay for defense costs of a suit against you.

Who Should Have Products Liability Coverage?

Manufacturers, distributors, suppliers, retailers and others whose product could be claimed by another to have caused harm or injury from consumption.  Any business entity or individual who puts their name or mark on a product should maintain  product liability insurance coverage.

How is the cost of coverage determined?

Product liability premiums are based upon the product,  sales volume, and your role in the process. Most importantly, do not under report or try to insure less than the actual amount of sales. Policies generally provide for substantial underinsurance penalties when you underinsure. You will want to make absolutely sure that your products are properly identified. For example, if you supply adjustable step stools or portable temporary steps do not categorize these items as ladders. 

Summary

In most cases, some limited form of this coverage will be present in most commercial general liability (CGL) or business owners’ policy (BOP).

When products liability is part of a commercial general liability policy, the coverage may be referred to as products-completed operations insurance. Importantly, limits are generally lower on these standard types of policies so determining your financial exposure to protect your business and personal assets should be made carefully.

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Peter Green Insurance Agency LLC | Products Liability, Business Owners Policy (BOP), Workers Compensation, Commercial Liability Insurance, Errors and Omissions Insurance, Directors and Officers Liability, Umbrella Coverage, Cyber Security Insurance, Group Medical Plans and Employee Benefit Packages | Serving  Costa Mesa, Irvine, Tustin, Santa Ana, Huntington Beach, Mission Viejo, Fullerton, Anaheim, Laguna Hills, Laguna Beach, Newport Beach, Riverside, Ontario, Long Beach, Whittier, Cerritos, Hacienda Heights, Torrance, Downey, Pomona, Redondo Beach,  and areas of Los Angeles County, Riverside County, Orange County, San Francisco, San Jose, Sacramento, Fresno, San Diego and California.