Product liability insurance is a type of insurance that protects a company against claims or lawsuits that could arise from products or services a company has made or sold. This type of insurance covers a manufacturer’s or seller’s liability for any injuries or property damage that was endured by a third party due to a defect or malfunction. Examples of these products could be tools, machines, or other sort of equipment. The third party could be anyone that used the product, bought the product, or was just a bystander to an injury or incident.
Should I Get Product Liability Insurance for my Business?
Product liability is covered under a general liability policy. This will combine with liability for any work you have completed, and together the coverage is called products-completed operations liability. Companies that manufacture or utilize potentially hazardous products and equipment, such as oil rigs, can have some difficulty receiving product liability coverage from a standard insurance company. Usually these businesses will purchase this kind of coverage separately from a specialty insurer that concentrates on that specific industry. Businesses should also be aware that hazardous products are more expensive to insure than less dangerous products, so your product liability rates will have higher premiums.
Manufacturers and sellers should design and market their products that don’t present a dangerous risk to a person’s safety. Unfortunately, defective products injure people and employees pretty regularly. Our Lafayette personal injury lawyers have expertise in product liability law, and we can defend you in a case if you’ve ever been injured. Contact us to learn more about how you can protect your business from any product liability cases, or if you’ve been injured in an unfortunate accident.