Getting a product liability insurance is important especially if you are engaged in manufacturing products. If someone gets injured or even dies from using your product, you could be held liable for damages. Without product liability, you could end up paying a huge sum of money. This is where your product liability insurance will kick in. The victims will hold you responsible for whatever losses that will result from the injury or damage so you can use your policy to pay off those claims and keep your business intact.
According to the website of Karlin, Fleisher & Falkenberg, there is always an assumption that the product is safe whenever the consumer buys them. As a manufacturer of products, you always have the dilemma of ensuring the safety of every product that you sell. In addition,you always vouch for the performance of your products and that they are free from defects, errors, or misrepresentations. The fact that you are selling them to the market means that it is safe for use. But somewhere along the way, something can go wrong and your product becomes defective and your business can get in serious jeopardy.
Your liability can come from three fronts namely manufacturing or production flaw, design defect, and defective warning or instruction. Victims will make you liable and may seek damages and compensation. Product liability claims can have varying cost so having an insurance can save you some expenses. The lawsuit may not only claim damages but will also include other costs as well such as medical expenses, loss income, grievance if the liabaility leads to death. For this reason, it really pays to protect your business with a product liability insurance. It will give you the peace of mind when emergencies such as lawsuits arise.