#product liability insurance
Product Liability Insurance Costs and Coverage
You are probably reading this blog because someone told you, you needed product liability insurance. You probably have some basic information on what product liability insurance is and what it does but like any smart business decision you must understand what it costs.
If you just want to know quickly how much a product liability insurance policy will cost or to get your questions answered by a real person then call 855-770-2669 to speak with an expert.
If you are looking for what what affects the costs of product liability insurance and a better understanding of the policy, then continue reading.
A quick review of Product Liability Insurance
I would not be doing a very good job helping to educate you if I just assumed you knew what product liability is so I will take a small amount of time now to explain what product liability insurance is.
It may be a manufacturing flaw, toxic chemicals in the product, design defects, or even an injury due to misuse of the product. It may not even be your company’s fault, but you still may be liable for damages.
At times, the awards are so large that the organization gets put out of business!
I don’t know about you but I would not want that the organization I own, or work for go out of business because someone misused our product and our warning label was not “specific” enough. Product liability insurance can protect your organization by providing the financial protection against these claims.
What are the potential costs?
By now I am sure you have some idea of whether you need product liability insurance or not, and you are ultimately waiting on if the price is right. If you were not aware, you may have a small amount of product liability insurance in your CGL policy already. If you are serious about wanting to protect your business, it would be a good idea to increase the amount of product liability insurance you have. While I would like to tell you how much it would be exactly for you to do this unfortunately I cannot.
Product liability insurance costs differ according to the products you sell, the volume of sales and where your organization fits in, in the chain of commerce. The average cost is about 26 cents per each $100 of retail costs. Of course, if you sell a very low risk product (like yarn) chances are yoru costs will be much less than the average.
Product liability insurance for those who manufacture or sell dangerous items (guns, fireworks, knives, etc. ) or products that could potential cause great bodily harm (cars, some toys, certain electronics, etc. ) will face higher costs and could even be denied coverage.
Even if facing a very high premium it may still be worth it to purchase a product liability insurance policy. Weigh the benefits. If you can afford to protect your organization from going out of business why would you not?
Getting the most out of your coverage
To me, it makes sense that if you are going to invest money into protecting yourself, you would want to make sure that your claims will not be denied. Insurance companies are more than willing to pay the claims out to you as long as you do your part.
Yes that’s right, you do have a part in making sure your policy correct and good to go.
1) Make sure that any new products brought into your organization are run by your insurance company. What if something went wrong on the new product line and you never told your insurance company? They would simply say, “we knew nothing about this product and we did not agree to insure it.” -Sorry, but simply keeping your insurance company in the touch can eliminate a stressful situation like this.
2) Develop a quality control program. When you show your insurance companies that you are doing your best to prevent risks, they are more willing to accept your claim and may be willing to give you a discount.
3) Have a legal professional periodically check on your warning labels, disclaimers and operating instructions to ensure that they are fool proof. The best insurance policy is the one in which you never have to make a claim.
The Rundown on Product Liability Insurance
I know there was a lot thrown at you in this blog so to save you from having to read through it all again here’s the rundown:
- Product liability insurance can save your business from a situation that arises from a product you are somehow associated with.
- Product liability insurance costs differ depending on the chances someone can hurt themselves with your product.
- This service provides the best return when you do your part to ensure things go smoothly.
Interested in seeing what the exact price for a policy like this would be for your organization? Maybe you need a little more information on whether or not this is for you. Or maybe you already see the value and want to know where to purchase this policy. Then Contact us online or give us a call at 855-770-2669 and we can help you with your needs.
ARE YOU PREPARED FOR A PRODUCT RECALL?