Product Liability.

As a business owner, you are responsible for ensuring that the products you sell are safe for your customers to use. However, even if you take all necessary precautions, there is always a risk that something could go wrong and a customer could be injured or their property could be damaged as a result of using your product. That's where product liability insurance comes in.

Product liability insurance is a type of insurance that provides coverage for businesses against claims made by customers for injuries or damages resulting from the use of a product. If a customer is injured or their property is damaged because of a defect in one of your products, they may decide to sue your business for damages. Product liability insurance can help cover the costs associated with defending against and settling these types of claims, including legal fees and any damages that may be awarded.

Having product liability insurance can help protect your business from financial losses resulting from product-related claims. It is especially important for businesses that manufacture or sell physical products, as these businesses are more likely to be at risk of product liability claims.
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Product Liability Insurance is highly recommended for any business which distributes, manufactures or sells a product. Generally product liability insurance is included within a Commercial General Liability policy, so always make sure to read the find print and make sure your product liability limit is sufficient.

Product liability insurance is a type of insurance that provides protection for businesses against claims related to the design, manufacture, distribution, or sale of a product. Some common exclusions in product liability insurance policies include:
Damage to the product itself: Many product liability policies do not cover damages to the product itself. This means that if a product is damaged or fails due to a defect, the policy may not provide coverage for the cost of repairing or replacing the product.
Normal wear and tear: Product liability insurance generally does not cover damages or losses due to normal wear and tear on a product. This means that if a product fails or breaks down due to normal use over time, the policy may not provide coverage.
Pre-existing conditions: Product liability policies typically exclude coverage for claims related to pre-existing conditions or defects that were present before the policy took effect.
Improper use or misuse: Product liability policies generally do not cover damages or injuries resulting from improper use or misuse of the product. For example, if a consumer uses a product in a way that it was not intended to be used and is injured as a result, the policy may not provide coverage.
Governmental regulations: Some product liability policies may exclude coverage for claims related to violations of governmental regulations or standards.It's important to carefully review the exclusions and limitations in a product liability insurance policy to understand what is and isn't covered.

Companies can help mitigate their product liability risk in a few ways:
Ensure that product design meets required safety standards: Proper research and development must be conducted to ensure that all products are designed in accordance with industry-specific safety standards. Companies should make sure they are up-to-date on the most recent regulations and updates, as well as any changes in consumer expectations.
Develop sound manufacturing and testing practices: Companies should have quality control measures in place to ensure that all products are manufactured safely and comply with industry standards. This includes conducting tests for product safety, durability, performance, and other factors as needed.
Provide clear warnings and instructions: Manufacturers must provide clear warnings or instructions with each of their products. These should be visible and easy to find, as well as written in plain language so that consumers can easily understand them.
Regularly inspect products: Companies should have a system in place for regularly inspecting their products for any safety hazards or defects. This should include both physical inspections at the manufacturing site and regular testing at different stages of production.
Have adequate insurance coverage: Companies should have a product liability insurance policy in place to cover any potential damages or losses that may arise from defective or unsafe products.
Follow up with customers: Companies should be proactive in following up with customers after they purchase their products. This could include regular surveys, emails, or check-ins to ensure that their products are performing as expected and that customers are satisfied.
Invest in research: Companies should invest in researching any potential safety issues with their products, including conducting surveys or studies. This will help them identify and address any potential risks

If you want to work with a commercial insurance brokerage that puts people first and values transparency, sustainability, ownership, and impact, then Summit is the right choice for your business insurance needs.

At Summit, we craft innovative insurance solutions that are custom tailored to your business, giving you the confidence you need to succeed. Our team is dedicated to building trust and creating value through open and honest communication. We are in it for the long haul and strive to make a positive impact in everything we do.

So if you want a business insurance partner that shares your values and is committed to helping you succeed, consider working with Summit.

Product liability insurance typically does not cover damages or injuries resulting from intentional misuse of the product, normal wear and tear, or damage caused by the consumer's own negligence. It also typically does not cover damages or injuries resulting from the product being used in a way that is not intended or outside of its intended purpose.

The cost of Product Liability Insurance depends on a variety of factors, including but not limited to:

- The type of product you manufacture and/or sell
- The revenue you generate from this product
- Whether you conduct installation of this product or not
- Claims History
- The countries you sell the product into (domestic vs. overseas)

Product liability claims are claims made as a result of injuries or damages caused by a product.
Some examples of product liability claims include:
Manufacturing defects: These are claims made as a result of a product being improperly manufactured or assembled, leading to defects that cause injury or damage. For example, if a batch of car tires is improperly manufactured, resulting in the tires coming apart while in use, the manufacturer may be liable for any resulting accidents or injuries.
Design defects: These are claims made as a result of a product being designed in a way that is inherently dangerous or defective, even if it is manufactured correctly. For example, if a car's fuel tank is designed in a way that makes it prone to rupturing in a collision, the manufacturer may be liable for any resulting accidents or injuries.
Inadequate warning or instruction labels: These are claims made as a result of a product not having clear warning labels or instructions, leading to injury or damage. For example, if a hair dryer does not have a warning label indicating that it should not be used in the bathtub, and a consumer is electrocuted as a result, the manufacturer may be liable for the injury.
Fraudulent or misleading marketing: These are claims made as a result of a product being marketed in a way that is misleading or false, leading to injury or damage. For example, if a dietary supplement is marketed as a cure for a specific medical condition, and a consumer suffers injury or side effects as a result of using the product, the manufacturer may be liable for the injury.

Product liability claims can be complex and can involve multiple parties, including the manufacturer, distributor, and retailer of the product.