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Complete Breakdown Of Product Liability Insurance And Why You Need It In 2021
What Is Product Liability Insurance? • Product liability insurance is an important aspect of doing business. • It helps protect your company against being sued by customers, clients, or consumers. • Product liability insurance provides protection from lawsuits that may arise as a result of the sale of faulty products. • The U.S. has some of the strictest laws regarding product liability.
Who Needs Product Liability Insurance? • Manufacturers • Retailers And Wholesalers • Trade People
Insurance Policies That Include Product Liability Insurance • General Liability Insurance • Errors And Omissions Insurance • Professional Liability Insurance • Business Owners Policy (BOP)
What Does It Cover? The policy covers: • Damage to someone’s property • Bodily injury • Someone getting sick • Wrongful death
What Are Some Exclusions? Exclusions from the policy include: • Product recall costs • Employee injuries • Damaged products • Accidents involving customers (which have nothing to do with a product) • Quality and performance issues • Intentional violation • Losses • Third party liability • Redesign costs
How Much Does Errors and Omissions (E&O) Insurance Cost? • The average cost of product liability insurance is $1,192 yearly. There are many factors that determine product liability insurance costs. These factors are: 1. Nature Of Business 2. Position In Supply Chain 3. Business Size 4. Products 5. Quality Control 6. Loss Control 7. Claim History
Protect your business by investing in product liability insurance. Get in touch with us to discover the liability coverage that suits your needs.