Protect your Business with Product Liability Insurance

26 May 2020

The best part of running a business is the fact that you have the complete responsibility and control of the products and services. However, it can lead to some unfortunate situations as well. As a business owner, you’re responsible for every product you make and sell. If one of those products is faulty, or causes some sort of injury, your business could be held accountable for the consequences that follow. Product liability insurance can help mitigate the losses from these types of situations.

What is Product Liability?

Product liability refers to situations where a customer purchases a product, and an issue with the product causes a bodily injury or property damage to a third party. The 3 most common reasons that lead to product liability claims are:

Design Defects

A design defect claim alleges that a product was unsafe or dangerous from the conception of its design.

Production or Manufacturing Defects

As the name implies, this type of claim alleges a flaw in the production or manufacturing of merchandise that created a dangerous or unsafe product.

Marketing Defects

A customer may seek action against your company for not supplying the necessary warnings regarding dangerous aspects of your product. The claim here is that a company did not adequately and appropriately notify the consumer of all the potential obvious risks and harm that the product may cause.

What is Product Liability Insurance?

Product liability insurance offers protection to your company, against any legal liability arising out third party injury or damage to property which is caused by the consumption or use of the product sold or supplied.

Product liability claims can result in serious financial and reputation loss to your company. At Unison, our dedicated team members who have in depth subject knowledge & experience offer you tailor-made policies with adds on to cover your financial losses against product liability.