If you own a company that manufactures, wholesales, distributes and retails a product (or several of them), then you might want to think twice about your current insurance coverage if the latter doesn't include a product liability insurance policy.
But what exactly is this policy? And how would your company benefit from purchasing it?
As the name entails, a product liability insurance policy protects you from financial losses associated with a defect product. In the event of said product causing bodily or property harm, you won't have to worry about subsequent lawsuits.
Well, okay maybe you will have to worry about that... but you can rest assured that the costs related to defending yourself in court will be taken care of by your insurance company. In other words, you won't have to worry about finding a lawyer or paying for the damages if you end up losing the case.
This is the main reason why you need to be covered under this policy. And really, do you need another one? It doesn't matter how small your company is. If your company deals with products in any way, then being covered under a product liability insurance coverage is an absolute must. It can well end up saving you from bankruptcy down the road.
Keep in mind, however, that the kind of products that you associate yourself with play a HUGE role in how much insurance coverage your company will need. As an example, a company that deals in clothing will be far less likely to be sued than a company that deals in... let's say... home appliances. With that in mind, does the company that deals in clothing need to be covered under this policy? Of course it does -- just not as much.
For more information on this policy or to request your free insurance quote, feel free to give Sharp Insurance a call or drop us a line.