What is Product Liability Insurance?

Product Liability Insurance covers a business financially from any possible claims a customer might make if injury, illness or death occurs from the use of one of their defective products. A product can be classified as software, equipment or food that the business has supplied. If this occurs, the business will have the financials available to pay for any legal fees or medical costs that arise. Without this type of insurance, the business will have to use its own money.

What can a customer claim for?

  • Medical costs incurred due to physical or psychological damages suffered.
  • Long-term medical costs, if treatment is prolonged.
  • Current and/or future loss of income if damages were severe enough that they are unable to work and, therefore, unable to earn an income.
  • Legal costs incurred as a result of pursuing a case against the business.

Who needs Product Liability Insurance?

The type of businesses that would need Product Liability Insurance relate mainly to manufacturers, particularly those in the food, clothing, toys, equipment or any type of hazardous material sectors that can potentially cause harm to others.

When you purchase Business Insurance, consider including Product Liability Insurance. Do your research about the different policies available to you online today, and give yourself the peace of mind that comes with knowing your business is covered.