Annapolis Businesses Need the Right Kind of Insurance: Product Liability Explained

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Being your own boss, running your own business can be both liberating and profitable.  That’s why business insurance is so important. Knowing the best way to insure your business will help save time, money, and headaches. At Peter B. Crilly and Associates, we’re here to help explain what is covered in a business insurance policy. One type of business insurance you’ll want to know more about is called  Product liability Insurance.

You may work hard for many years to build your company into something special. However, it can all be brought down with one error or mistake from one of your employees or suppliers. You are responsible for the actions of your staff and business associates and here are some examples:

1) A catering business worker is running short on time and fails to wash the fruit and vegetables included in an appetizer tray. As a result, several people become ill and are hospitalized.

2)  A worker at a construction site tries to save money by using cheaper materials, and the porch they have built  collapses when stressed with too much weight.

3). Equipment for a salad dressing company malfunctions and mixes in a peanut product into the ingredients not included on the labeling, resulting in an allergic reaction experienced by several consumers.

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Product liability and product liability insurance covers three basic issues:

  • Defective products
  • Defective design
  • Failure to provide adequate product warnings to users

Without product liability coverage, the business owner could be sued for millions of dollars in damages, including medical expenses and lost wages. If you manufacture, distribute, supply, or sell products to the public, product liability coverage is extremely important.

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