Products Liability Insurance Coverage For Your Business
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Products liability insurance coverage for your business is an important part of an overall business insurance program for businesses involved in the manufacturing, wholesale, distributing and/or retailing of any/all products. Typically products liability insurance coverage for your business can be found as part of a commercial general liability insurance policy and as commercial general liability insurance policies are also typically modular products liability insurance coverage for your business is usually found in the section often labelled as Products-Completed Operations Insurance.
Products Liability Insurance Coverage For Your Business Explained
Products liability insurance coverage for your business provides financial protection for your business relating to numerous activities from the manufacturing or sale of products, foods, medicines or other items. Specifically, as part of Commercial General Liability policy, this coverage provides protection against law suits for losses due to injuries caused byour products – including design defects or a failure to warn consumers about the dangers of using a product etc.
Real Canadian Products Liability Insurance Coverage Claims Sources
Products liability insurance coverage can protect your business against the following scenarios and others:
- Manufacturing or production process flaws that cause unreasonably unsafe defects in the product. For instance, there may be traces of dangerous chemicals, ingredients and/comtaminants in your product, which could be toxic to those using it.
- Design defects that make the product unsafe for use by the public.
- Failure to provide adequate defect warnings or instructions for using the product. These claims arise when products are not properly labelled or have warnings that are not explanatory enough to reduce consumer risks while using the product.
Depending on the details of the case, money may be awarded to the party that filed the claim for their damage (including medical costs, economic damages and attorney’s fees) or punitive damages and regardless of the outcome your business will incur significant legal expenses defending a products liability claims and the defence costs are also covered by products liability insurance coverage.
Who Needs Canadian Products Liability Insurance Coverage?
Even if you do not physically manufacture, repackage and/or alter a product in any way, you may be at risk for litigation. The actual manufacturer is not the only party liable for product flaws, defects and failures; retailers and wholesalers can also be found negligent and/or liable. The logic here is that there is a stream of commerce that a product goes through from its inception to the hands of the consumer. If your organization had any part in that stream, and as long as the product was defective when it left your control, you can be held liable for any problems that arise.
For Products Liability Insurance Coverage For Your Business Call ALIGNED Insurance Brokers Today At 1-866-287-0448
|ALIGNED Across Canada 100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Waterloo, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|
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