Insurance is a necessity in many walks of life. If you drive a car it needs to be insured, your home and contents will be covered by insurance, and you may even have insurance on individual items of value.
In personal terms, life insurance is also helpful, but in this article, we are talking about a very specific form of insurance: Product Liability Insurance. What is it, and when might you need it? With no further hesitation, we’re here to explain.
What is Product Liability Insurance?
If you make or supply a product to customers, you must be insured against the event of damage or injury coming about through a fault on that product.
The insurance is against any claims that may come about. Should, for example, a fault in an electrical product cause a fire, the customer will have a claim against your business.
Your product liability insurance is designed to cover any costs and keep the business alive. This form of insurance will be carefully tailored to meet the needs of your business, in terms of the value of the cover it provides.
Even if you are self-employed it may be essential you have Product Liability Insurance when you are supplying a product to the public or to other businesses. How do you know if you need Product Liability Insurance, and why is it important for product launches?
Why for Product Launches?
Put simply, a product launch is introducing a new product to the market. Whether that market is the public or other businesses, your product is fresh and an unknown quantity.
You will have carried out all the required tests and checks and be certain the product is fit for market, yet there is always a chance of something going wrong. Therefore you need to ensure you have adequate Product Liability Insurance before your product goes to market and at the time of the launch.
The early stages of any product are those in which a product is most likely to reveal its faults. These faults may not be harmful, but in the event, they could cause damage or injury to property or individuals, you are covered when your insurance applies.
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It’s always very important to make sure you have the right cover and at the right level, and here is a website that will provide you with excellent information regarding what you need to do.
How to Choose Product Liability Insurance
If a claim is made against your company, it will be up to the courts to decide if you are liable or not. Even if the case goes in your favor you may still need to pay potentially considerable legal costs so make sure your Product Liability Insurance applies in this instance.
There are many situations you may not have thought of, so if you believe your product will not need insurance, you need to think again. A claim may be made if you supply, for example, computer software that inadvertently causes damage by its use. Or you might be a supplier of edible items that cause illness.
The damage may be through no fault of your own, but it is still essential that your business is covered in the event of any claims.
If you are setting up in business as a supplier of any kind you need to start looking at Product Liability Insurance right now, and if you are already a supplier and do not have cover, act now before it’s too late. Check out Product Liability Insurance right away and protect your business from claims.