Product Liability Insurance – Indispensable Coverage for Your Peace of Mind

Running a business these days requires that your business carry a myriad of loss prevention insurances, errors and omissions, personal injury and the like. If you are in the business of manufacturing a product it is essential that you carry product liability insurance. Almost every day you hear of product recalls. Products that pose hazards to the public are recalled for everything from posing a potential choking hazard to air pollution. You can be sued even if your instructions for use were unclear and the product was misused. Simply put, Product Liability insurance protects your bottom line in the event of a consumer experiencing some type of bodily injury from the use of your product. With injury awards that cost companies millions yearly, all it takes is one person to bring a lawsuit against your company for you to lose your business entirely.

If you outsource the manufacture of your product your business cannot survive without product liability insurance. You may have done your due diligence and checked out everything required to manufacture your product to the highest standards but the possibility remains that when manufacturing of the product is done overseas, replacement parts may not meet your established standards. Although this type of insurance is not cheap, premiums can range from $2,000 to $10,000 per year but if you take into consideration that you could stand to lose hundreds of thousands to millions of dollars in a lawsuit, the expense is negligible.

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