Product Liability Insurance: What Does it Cover?

August 5, 2009

Small business owners, entrepreneurs, and manufacturers may all need liability insurance to protect themselves and their business from financial disaster of potential lawsuits.

Liability Insurance Protection in Three Areas:

1. To cover injuries caused by a product that malfunctioned, faulty, or even a defect. IF someone is injured properly using an item sold by a business, the injured person could sue. Good product liability insurance protects the business from this type of lawsuit.

2. If the item sold has a faulty design, both the manufacturer and the seller of this item can be sued if there is damage such as fire, or personal injury.

3. A product is used improperly or in a way that it is not intended, and does not have a disclaimer for this kind of use or abuse of the item. If this item causes injury or damage, the seller can be sued for lacking the proper warnings.

Courts have determined that both the seller and the manufacture are liable for injuries and damage caused by items sold from a business. Liability Insurance protects you personally, and the welfare of your business from potential lawsuits and financial disaster.

Merits of Product Liability Insurance

Product Liability Insurance – Because not everyone has common sense!

Does Your Small Business Really Need Product Liability Insurance?

The Basics Of Liability Insurance For Businesses

Filed Under Business Opportunities