PRODUCT LIABILITY INSURANCE
Product insurance examples is one of the important insurance covers a manufacturing company is expected to have in order to protect its reputation in relation to the items produced. In that case, what do you think product liability insurance is?
Product liability insurance is an insurance feature that prevents a company from the unfortunate consequences that may result from what it produces. Companies producing commodities like machines, medicines, and food staples need product liability insurance in case such commodities cause harm to consumers.
Why Do You Need Product Liability Insurance?
If a customer sustains an injury or other forms of damage from the use of a certain product, he/she may decide to file a suit against the manufacturer of the product. In view of this, you need product liability insurance to protect your company/business when a relevant problem arises. Regardless of the things you produce, you certainly need certified product liability insurance which should cover you against the injury or harm your product may inflict on consumers. Anyone using the item you produce has the right to bring legal action against you if the item causes harm to them.
What is Product Liability?
Basically, the concept of product liability implies that a company/manufacturer/seller is responsible for the items produced or sold. By the term “responsible’’, such a company/manufacturer/seller may be sued by consumers in return for any damage sustained.
Also, there are product liability claims which consumers make in order to express their dissatisfaction over the use of certain products. Product liability claims come in various types and some of the notable ones are inadequate instructions/warnings, design defect and production/manufacturing defect. Let’s take a look at some of these product liability claims as discussed below.
Inadequate Instructions/Warnings: If a patient buys a medicine from a pharmacy, he/she expects to find some instructions showing how the medicine can be used to ensure it produces the desired result. If, however, the instructions are incomplete or fail to imply the risks associated with the use of the medicine and the patient suffers a disorder after using it, he/she has the right to sue the manufacturer for failure to provide detailed instructions.
Design Defect: If a certain product is not properly designed and its user sustains an injury resulting from the fact that the product has a faulty design, he/she can charge the manufacturer to court. Supposing that the handle of a knife suddenly pulled off and the person using the knife sustained an injury as a result. In response to this, the user can sue the manufacturer for the claim that the handle of the knife was not properly fixed.