WHAT IS PRODUCT LIABILITY INSURANCE?
Under the Consumer Protection Act, consumers are protected at every stage of the lifecycle of a product. As a result, retailers and wholesalers are often sued separately or brought into an alleged negligence by the consumer. Product Liability Insurance protects your business from financial loss and/or claims due to bodily injury and property damage resulting from any physical product the insured supplies, manufactures, imports, distributes, and even resells to the public. This includes damages caused by a defect or malfunction of the product as well as defective warnings and instructions. Negligence claims can even occur even when a product is used incorrectly by the consumer. Premiums for these policies are based upon the type of product, volume of sales, and the role of the insured in the process. Remember, product liability claims can and do put businesses out of business. If your business is involved in any part of the chain of commerce, then it is critical to secure product liability coverage. The experts at Eichberg Associates, Inc. will work with you to determine the level of coverage needed to protect yourself from product-related claims.
What types of products are covered by Product Liability Insurance?
Product liability covers a very wide range of items included, but not limited to food, medicines, clothes, toys, tools, building materials, electronic devices, or even pet food and supplies.
What damages are covered by Product Liability Insurance?
- Medical costs
- Compensatory damages
- Economic damages
- Attorney fees, costs and other punitive damages
Who needs Product Liability Insurance?
- Retailers and/or Resellers
- Importers and Distributers