As a business owner, you are responsible for many different things. You must have insurance that covers any injuries that occur as well as a policy that covers the products you sell. If you make and sell any goods, you need product liability insurance. It covers your products as well as anything that goes along with making or using those goods. Check out some of the things that this type of policy will cover.
Harm Caused by Products
This type of commercial business insurance covers any harm that occurs as a result of your products. One example is a design flaw, which is when the product has an issue with the design that can affect others. You might produce a lamp that has a power switch on the cord, which causes a customer to fall down when they try to shut it off.
Product defects are different and refer to issues with the product itself. These defects can lead to injuries among your customers. The Remington Arms Company faced a major lawsuit due to an issue with the firing mechanism on one of its guns, which injured an elderly woman. The product insurance plan will also cover any issues with the warning labels or instructions on your products. These labels may not include certain ingredients or do not explain what customers can and cannot do with the product.
Liability Coverage
A small business insurance plan that includes liability coverage pays out when someone files an insurance claim. Customers may complain about the lack of a warning label on an item or file because they suffered an injury while using your product. Make sure that your policy covers both medical bills and any pain and suffering they may experience.
Insurance Costs
The price you pay for commercial business insurance depends on factors such as your spot in the manufacturing chain and your products. Those who make the products usually pay more than the people who distribute the items. Products that have a higher risk of causing injuries have higher insurance costs. They can include packaged foods and meal kits. National Risk Experts, LLC can talk with you about your products and help you decide on how much your product insurance plan will cost.
Other things that affect your costs include your claim history and the coverage limits you want. When you have a higher limit, you pay more for insurance. This can keep you avoid paying any costs out of your own pocket later. If you settle a claim with a consumer and don’t have enough insurance coverage, you’re responsible for paying the balance. Those with a higher rate of claims will also pay more. Insurers can often help you save money when you buy a small business insurance plan along with another type of coverage or when you adjust your deductible.
If you make or sell products, you need the right type of insurance. Call National Risk Experts, LLC to sign up for a product liability insurance plan today that covers defects and other issues related to your products.
