Product Liability Insurance
Running a business is a big job, filled with both challenges and chances for success. One primary concern is what would happen if a product your business sold causes harm or injury.
Every business that deals with physical products should evaluate their risk exposure and consider product liability insurance as a means to protect their financial stability and ensure uninterrupted operations in the event of a lawsuit related to one of their products.
Product liability insurance is crucial for any business involved in the creation, distribution, or sale of physical products.
Who Needs Product Liability Coverage?
These types of businesses should consider having product liability insurance:
- Manufacturers
- Distributors
- Wholesalers
- Retailers (both physical stores and online retailers)
- Craftsmen and artisans
- E-commerce businesses
- Cosmetic bompanies
- Food businesses (restaurants, coffee shops, bars, bakeries, food trucks, caterers, etc)
Every business that deals with physical products should evaluate their risk exposure and consider product liability insurance as a means to protect their financial stability and ensure uninterrupted operations in the event of a lawsuit related to their products.
Real World Scenario
Imagine a small business that makes and sells handmade soaps infused with essential oils.
After releasing a new line, several customers experience severe skin reactions and decide to sue the business for their medical costs and suffering.
Faced with substantial legal fees and potential settlements, the business is at risk of financial ruin.
If the business holds product liability insurance, it would cover these costs, providing financial relief and helping the business to continue operating despite the lawsuit.
This insurance offers essential financial protection for businesses against claims related to harm caused by their products.