What is covered under product liability insurance?
Product Liability insurance* protects your businesses against claims by third parties relating to property damage or personal injury caused by your products. … Product Liability insurance is designed to assist you when your products cause a third party to sustain personal injury or property damage.
What is product liability insurance used for?
Product liability insurance protects you against the cost of compensation for: personal injuries caused by your faulty product. loss of or damage to property caused by your faulty product. unforseeable circumstances such as product faults that your quality control system could not identify.
Why do I need product liability?
Businesses that create, manufacture, distribute and sell products should consider product liability insurance. This type of coverage protects your business from costs if a product doesn’t work properly and causes harm to a third party. Defects in your company’s product could cause injury or property damage.
Do I need product liability insurance for my business?
Product liability insurance isn’t required by law. That doesn’t mean you shouldn’t consider taking out a policy when insuring your business. Product liability insurance can go a long way to protecting your business if someone brings a claim against you.
Is products liability insurance required by law?
Product Liability Insurance may be a necessary requirement before licences for certain trades are issued. … Public liability insurance includes covers for your legal liability for property damage or personal injury caused directly by your business activities or on your business premises during the course of your work.
Is product liability same as public liability?
The difference is that Public Liability relates to injury or property damage whilst you’re on the job, and Products Liability relates to injury or damage caused by any products you distribute, supply or manufacture.
Do I need insurance to sell products?
You’re not legally required to hold product liability insurance, but as a seller, supplier or manufacturer, you do have a duty of care towards your customers. … If your product causes injury or damage to a customer or their property, you could end up facing legal action.
Does an LLC need product liability insurance?
While the LLC may not need these additional policies, you should discuss them with a business adviser or attorney: Product liability insurance. If the LLC has manufactured a defective product, you can insure against property damage and personal injury to others.
What insurance do you need to sell products?
Product liability insurance is essential cover for any business that sells or manufactures products. It is rarely sold as a standalone product but is often added on to a public liability insurance policy.
Does product liability insurance cover services?
Product liability insurance covers damages related to your products or completed services. That’s why manufacturers, retailers, and contractors need both types of coverage.