Product liability insurance covers the liability of a company for the products they manufacture or sell. If a product causes damage, product liability pays medical bills or repair of the injured party and the legal fees of the company.
Most small businesses need product liability coverage, which is why it is included in the standard general liability insurance. This is also a good reason to work with an insurer that understands the needs of small businesses, for example, which makes it easy to cover themselves. You can also look for private label products insurance via https://www.ppibcorp.com/product-liability-insurance.
Image Source: Google
Any company involved in products bringing to consumers can be held liable if its products cause injury or assets damage.
Product liability insurance guards the business against claims settlement related to product defects, malfunctions or labels warning and insufficient instructions. general liability includes coverage of products-completed, but a company with greater risk may want a stand-alone policy.
Both general liability and product liability insurance can be written on an occurrence basis or applied. A pay occurrence of political claims also covered long as the damage occurs while the policy is effective.
However, a policy of claims made only pays if the damage and demand both occur when the policy is active. This distinction is important to know because it affects whether you are covered in a claim of product liability.