You can face a huge liability risk if any person is injured because of using your products. This risk is covered by the product liability insurance policy, but the amount of coverage depends on product liability insurance.
Product liability insurance, as the name suggests that it protects your business from financial impact of litigation which can be caused by use of your products. Your legal risk which is associated with your products is transferred to your insurance company. You should have idea about this insurance.
Legal responsibilities:
A manufacturer has legal responsibility for bodily injury and property damages which are caused from the use of the business products. Business owner should be sure about the coverage of the policy. Though policy holder has the right to get compensation sometimes, damages may fall out of the parameters of bodily injury or property damage of the insurance policy then policy holder may not get compensation under the product liability insurance.
Coverage amount:
According to your business size, type, and the risk, your amount of coverage will be on insurance policy. Same amount of risk cannot carried by the all products and business. You can talk with your insurer to determine the amount of coverage for your business.
Scope of coverage:
Not only manufacturer, other individuals also are responsible for law suites, they can be individuals whose name is on the product and the business who assembled it or repaired it, the business who shipped it, and others.
Business owner should be aware of all these things before purchasing the product liability insurance.
