As a business owner, you have a legal responsibility to ensure that your products are safe for your customers to use. However, even with the best intentions and strict quality control measures, accidents can still happen, and your business may be held liable for any damages or injuries that result from a faulty product. This is where product liability insurance comes in, as it provides protection for your business in the event of a product-related lawsuit.
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Product liability insurance is a type of coverage that specifically addresses the risks associated with manufacturing, distributing, and selling products. It can help cover the costs associated with legal fees, settlements, and judgments that may arise from claims related to product defects or failures.

So, which businesses need product liability insurance? The answer is any business that manufactures, distributes, or sells products. This includes:

• Manufacturers: Any business that creates a product, whether it be a physical item or a digital one, should have product liability insurance. Even if your business has quality control measures in place, there is always the risk of a defect or flaw that could cause harm to a consumer.
• Distributors: If your business is involved in the distribution of products, you may also be held liable for any damages or injuries that result from the use of those products. This is especially true if you are the last point of contact before the product reaches the consumer.
• Retailers: Businesses that sell products to consumers are also at risk of being held liable for any damages or injuries resulting from a product defect. Even if you did not manufacture or distribute the product, you may still be held responsible if it is sold through your store.

It is worth noting that the type of product being sold can also impact the need for product liability insurance. For example, products that are potentially hazardous, such as children's toys or medical devices, may require higher levels of coverage than products that are less risky.

In conclusion, product liability insurance is an essential coverage for any business that creates, distributes, or sells products. It provides protection in the event of a product-related lawsuit, which can be costly and damaging to your business's reputation. As such, it is important to assess your business's risk and ensure that you have the appropriate level of coverage in place to protect your business and its assets.

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Product liability insurance is an essential type of insurance that helps protect businesses from the financial repercussions of legal claims related to their products. While not all companies may require product liability insurance, it is an important consideration for companies that produce and sell products. Here are three key reasons why businesses should consider product liability insurance:

Protection From Legal Claims
The primary reason for purchasing product liability insurance is to protect against legal claims arising from injuries or damages caused by a business's products. Even if a business takes all necessary precautions to ensure that its products are safe, accidents can happen. In the event that a customer is injured or property is damaged as a result of a product, the business may be held liable. This can result in costly legal fees, settlements, or judgments. Product liability insurance can help mitigate these costs and protect the business's financial assets.

Compliance With Regulations
Product liability insurance may be required by law or by the businesses' customers or suppliers. For example, businesses that sell products to government entities or large corporations may be required to have product liability insurance as part of their contract. Similarly, certain industries or products may require specific insurance coverage to comply with regulations. By having product liability insurance, businesses can ensure that they meet these requirements and avoid potential penalties or lost business opportunities.

Peace Of Mind
Finally, product liability insurance can provide peace of mind for business owners and operators. Running a business comes with many risks and uncertainties, and the potential for legal claims related to products can be a source of stress and worry. By having product liability insurance, businesses can rest assured that they have protection in place in the event of an accident or lawsuit. This can allow business owners to focus on growing their businesses and serving their customers.
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In conclusion, product liability insurance is an important consideration for businesses that produce and sell products. It can provide protection from legal claims, help businesses comply with regulations, and offer peace of mind for business owners and operators. While not all businesses may require product liability insurance, it is a valuable investment for those that do.

Construction Defect is a phrase contractors do not like to hear.
Construction defect claims can be defined as damages resulting form faulty work or workmanship. Court decisions and state regulations make managing the risk of construction defects more than just prevention.
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Construction Defect Insurance
The CGL policy underwent a major revision in 1986. The changes sought to clarify and to simplify the "property damage" exclusions. The changes were not, however, intended to change the exclusions meaning or effect.  Not every policy is created equal.  Make sure your contractors insurance does not have defect exclusions.

“Now, an ‘occurrence’ is typically defined under a CGL as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” In other words, a threshold coverage question is whether the Homeowners’ lawsuit alleges property damage caused by an occurrence.” Property
Casualty360.com

Legal battles will continue over whether construction defect claims are covered by commercial general liability policies. This will cause increases in the cost of contractors insurance.

Construction Defect Risk Management

• Call us for a coverage review.
• Limit sub-contractors, if possible.
• Require sub-contractors to have the same coverage as you do.
• Document all conversations and changes.
• Repair any problems when you see them.

Construction companies should make sure they protect themselves by identifying the applicable states laws, reviewing all the risks, identifying any insurance gaps under state laws, and then taking steps to resolve any coverage issues.

Business Insurance Trends
The business insurance world is changing at a fast pace. Technology is continually evolving and businesses must change or die. New technology also brings change in claims and litigation. Often lawsuits filed today are indicators of business liability claims tomorrow.

Business Insurance
Business or commercial insurance coverage is available for almost every conceivable risk your business might face. The cost and amount of coverage of policies vary among insurers.  Also the type of business you are in also impacts cost and coverage.  You should discuss your specific business risks and the types of insurance available for your business with us.

Future Business Insurance Risks

Intellectual Property
This is one of the fastest growing areas of litigation. The average defense cost in 2013 was over $500,000. With more information being disrupted over the internet, claims are sure to increase. Intellectual property insurance coverage protects companies for copyright, trademark or patent infringement, and claims arising out of the company's operation.

Products Liability Insurance
Products liability insurance covers a wide range of potential claims related to the sale and distribution of products. These include any injuries or losses due to design defects, manufacturing defects, inadequate instructions or warnings, improper packaging or labeling, breach of warranty, and other similar issues. In addition to covering the associated legal costs, it can also provide coverage for damages awarded by a court in such cases. This type of insurance is critical for businesses that produce, distribute, or sell products as it helps protect them from financial losses if they are held liable for an injury caused by their product.
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Healthcare Professional Liability
As we move well into healthcare reform, we are seeing increased litigation focused on medical providers of all kinds. In 2012, litigation against OB/GYN doctors accounted for over $3.5 billion in claims. Many states have enhanced medical malpractice laws designed to speed up and compensate injured patients.

Cyber attacks
Recent news that Russian cyber thieves stole billions of passwords should create heightened awareness about the risks and need for cyber insurance. The problem, Munich Re explains, stems from the fact that “most traditional property and liability policies provide no cover for cyber risks” although there still may be a duty to defend until such time as coverage is determined.

Social Media
Social media is becoming popular with many businesses, and this increases the liability risks. The combination of personal use and business use combined with privacy laws increases the risk to business of being sued by employees and other third parties. There is definite increased risk of defamation, libel and slander for firms who don’t outsource the service.

Directors & Officers Liability
Most business owners don’t believe they can or will be sued despite statistics that show otherwise. The latest number by Chubb Insurance Company shows that about 20% of firms have been sued for directors and officers negligence. Claims can be made by shareholders, regulators, family members, customers, vendors and competitors.

What is liability insurance?  It is the type of insurance that provides coverage for the purchaser if he or she is sued for losses or damages to another person.  However, note that payment is NOT made to the insured person but to a third party that suffers loss or injury based on the insured person’s action or inaction.
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Furthermore, liability insurance does NOT cover contractual negligence on the part of the insured.  In other words, if you do NOT meet your contractual obligations, you cannot expect your insurer to come to your aid.  Lastly, an insured is NOT covered by this policy if it is proven that damages were caused deliberately.

Type Of Liability Insurance Policies

1. Business Liability
Every business runs the risk of causing losses or damages to a third party.  This coverage protects your business from liability claims resulting from your premises and operations, your products and services, personal or advertising injury (libel suits are covered here), medical expenses or fire damage.

2. Employer Practices Liability
If your business has employees then there is the need to have this type of liability coverage to protect your business.  This policy covers your business for various claims by employees (past and current). It includes claims of wrongful termination, sexual harassment, discrimination, negligent evaluation, failure to employ or promote, breach of employment contract, wrongful discipline, mismanagement of employee benefit plans, deprivation of career opportunity and infliction of emotional distress.

3. Professional Liability
This is also known as E&O (Errors and Omissions) insurance.  If you are a professional who may be sued for negligence, errors or omissions in the discharge of your professional duties, then you need this policy type. This will cover you if your advice leads to financial loss to your client, a client is dissatisfied with your service and decides to sue for damages and other related issues.

4. Umbrella/Excess Liability
This type of policy increases the amount of liability coverage for a policy holder.  It is also called personal excess coverage.  People buy it to ensure that lawyers do NOT go after their personal assets when the liability coverage amounts in their home and/or auto insurance policy is inadequate for compensation in a liability suit.

There are other liability insurance policy types like general liability and cyber liability.  Your auto insurance policy normally comes with liability components in the form of bodily injury liability, which takes care of people injured in an accident, and property damage liability, which pays for damages to someone else’s property by your vehicle.

5. Products Liability Insurance
Products Liability Insurance is a type of insurance that provides protection for businesses when their products cause property damage, bodily injury, or death to customers. It helps cover the costs associated with defending and settling claims against your business due to any losses incurred because of a product you have made, sold, or distributed. This includes damages related to design defects in manufactured goods; improper labeling or packaging; inadequate warnings; and breach of warranty. Without this coverage, businesses would be completely exposed in such cases and face devastating financial losses and significant legal fees

So Why Do You Need Liability Insurance?
The answer is simple: We live in a litigious world. People are very quick to claim damages for any action or inaction that they believe impacts them negatively.  You are liable if a dead branch falls off your tree and hits a guest on your property. You are liable if someone is bitten by your dog.  The list goes on and on.
And what happens if the liability amount of your regular policy is inadequate? Any smart lawyer can easily go after your assets in order to get full compensation for his or her client. This means that you need to get the right liability coverage (an umbrella insurance policy) if you have substantial assets and want to keep them safe.

It is on record that 60% of employers are sued each year by their former employees.  Add the fact that communities can easily sue a company for a product, service or activity that has “affected” their lives negatively. Liability insurance is a necessary part of any insurance policy.

Product liability insurance is important to any business’s risk management strategy. It helps protect businesses from the costs associated with product-related claims or lawsuits brought by customers, vendors, or other parties for bodily injury and property damage caused by a defective product. However, it is important to understand that not all risks are covered under this type of policy; there are certain exclusions that may limit your coverage and can be difficult to navigate.
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Exclusions typically center around three areas: manufacturing defects, design defects, and failure to warn consumers about potential hazards related to their products. Manufacturing defect exclusion typically bars coverage for any damages arising out of a manufacturing process gone wrong such as assembly errors or component failures due to intentionally poor-quality control practices at the factory level. Design defect exclusion limits coverage when harm results from flaws in the layout or structure of a product that was known at its conception but failed because it was inadequately designed with inadequate safety features built into it prior to its release onto the marketplace.

Lastly, failure-to-warn exclusion excludes coverage if manufacturers fail to adequately warn consumers about potential risks associated with their products before they purchase them.

What are Some of the Common Exclusions of Product Liability Insurance
In addition to the exclusions outlined above, product liability insurance policies typically contain additional exclusions that can limit coverage. These include foreign component parts exclusion which excludes any claims related to a defect in parts of a product sourced from outside the country; consequential damages exclusion, which bars coverage for any indirect losses such as lost profits or reputation resulting from a defective product; and professional service exclusion which limits coverage for products used in certain professions such as medical practice or engineering.

Another common exclusion that can be found in many product liability insurance policies is the intentional misrepresentation exclusion. This clause excludes coverage for any claims or damages resulting from a manufacturer’s deliberate attempt to deceive buyers about their product through false advertising, labeling, or other means.

The illegal acts or violations exclusion typically bars coverage if a company is accused of violating laws governing the design and manufacture of its products. This could include anything from not meeting safety standards set by regulatory agencies to distributing counterfeit products in violation of intellectual property laws.

When selecting an appropriate policy, it is important to understand all the exclusions that may be included so you know exactly what risks are covered under your policy. It is also important to remember that while many of these exclusions are standard across most policies, some insurers may offer more comprehensive coverages with fewer exclusions than others. Finally, make sure you read and understand all terms and conditions before signing up for any type of policy – this way, you don’t end up paying out-of-pocket costs if something were to go wrong down the line.

Conclusion
In conclusion, product liability insurance is an essential element of any business’s risk management strategy. It helps protect businesses from costly claims or lawsuits brought by customers, vendors, or other parties for bodily injury and property damage caused by a defective product. It is important to understand the various exclusions that can be included in most policies, so you know exactly what risks are covered under your policy. When selecting an appropriate policy, it is also important to remember that while many of these standard exclusions are common across most policies.

Introduction
Product liability insurance is a type of insurance coverage that provides protection to businesses in case they are held responsible for any damages caused by their products. It covers property damage, bodily injury, and other losses resulting from the use of a product. This type of coverage is important because it helps protect businesses financially if they are ever sued due to an issue with one of their products. Companies can purchase this coverage at different levels depending on how much risk their business faces and the number of financial assets that need protecting in case there's a lawsuit. Without this type of insurance, businesses could be exposed to extreme financial loss if something were to happen as a result of one or more products they sell.

Types of Product Liability Insurance
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Manufacturers Liability Insurance is a type of product liability insurance that covers businesses for any damages or losses resulting from the products they manufacture. This coverage helps protect companies financially if their product causes an accident, injury, or property damage. It also may cover legal costs associated with defending against lawsuits and other claims related to the product. This policy can be tailored to meet the specific needs of each business depending on what types of coverage are needed and how much risk they face in terms of potential liabilities.

Retailers' Liability Insurance provides protection for retailers who sell various types of goods. This type of insurance covers them if someone is injured by a product they have sold, as well as providing financial assistance with any legal expenses incurred due to a lawsuit regarding their products. Retailers should make sure this coverage meets all relevant laws in order to ensure full protection in case something goes wrong with one of their products down the line.

Wholesalers Liability Insurance is another form of product liability insurance that protects wholesalers from financial loss caused by faulty or damaged merchandise being sold through their business channels. It offers financial assistance if these issues lead to costly legal action such as lawsuits and settlements, helping cover both defense costs and awards given out for successful cases brought against them due to negligence involving a particular product being sold through their channels. Wholesalers can tailor this policy according to the level of risk faced when it comes to selling certain kinds of goods so that appropriate coverage can be provided at all times.

Benefits of Having Product Liability Insurance
Having product liability insurance is an important part of protecting a business from financial loss due to damages caused by its products. This type of coverage can provide protection against property damage and bodily injuries that may result from the use or misuse of a product. It also helps cover legal defense costs in case of a lawsuit as well as any awards given out should the company be found liable for any harm done by their product. Additionally, this coverage helps manage risks associated with new product launches and other related activities, which can lead to unexpected financial losses if something goes wrong. By having this form of insurance in place, businesses are able to reduce the risk posed by launching new products while still being financially protected against potential liabilities resulting from defective merchandise or careless manufacturing practices.

Important Terms of Product Liability Insurance
Indemnification Clause: This clause is an important part of any product liability insurance policy, and it states that the insurer agrees to pay for all damages or losses caused by a product. It also specifies which parties are responsible for paying out claims in case of a lawsuit. If a company wants to ensure maximum protection against potential liabilities, it should look into including this clause in its policy as it provides additional coverage if needed.

Exclusions From Coverage: Along with outlining what types of incidents are covered within the policy, there may also be exclusions from coverage listed, which means those particular events would not be eligible for reimbursement from the insurer even though they were caused by one of your products. By reading through these exclusions closely, businesses can better evaluate whether certain risks posed by selling their products can potentially leave them exposed in terms of financial loss down the line without proper insurance protection being put into place beforehand.

Conclusion
Product liability insurance is a key component for any business that manufactures, wholesales, or retails products. It provides financial protection in the event of an accident or injury caused by one of its products and can help cover legal costs associated with defending against any claims brought against them due to negligence involving their product. Having this type of coverage in place helps businesses reduce their risk exposure while still ensuring they have adequate protection should something go wrong down the line.

Strive Insurance Group, Inc. (formerly Gordon Lund Insurance Agency, Inc) is an independent insurance agency representing many insurance companies.  This means that we quote with many different insurance companies to obtain the best rate and coverage for your insurance.  We do this at no additional fee or service charge to you.  Our insurance agency's reputation for representing the best insurance companies, providing excellent customer service and competitive pricing to our clients has been earned and proven for over 30 years.  We take great pride in finding you the best coverage and backing it up with prompt personal service.

Product Liability Insurance is a type of insurance that business owners frequently ignore. When reviewing your policy, business owners frequently rapidly gloss over it. This is likely due to the fact that the Product and Completed Operations coverage is frequently included by default in the General Liability part of an insurance policy. Although sometimes it is EXCLUDED on the policy, so make sure you understand your policy. 
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For whom is product liability insurance necessary?
Most, if not all, businesses need product liability coverage. 

Product liability cases frequently have the potential to be among the worst losses for small companies. This is another reason why small firms should always invest in Business Insurance as soon as they launch their operations.

Our insurance agency's reputation for representing the best insurance companies, providing excellent customer service and competitive pricing to our clients has been earned and proven for over 30 years.  We take great pride in finding you the best coverage and backing it up with prompt personal service.