Every manufacturer, importer, or distributor wants to make sure that products and goods they supply are safe and fault free. Product liability insurance is the way to go! By purchasing it you ensure safety and peace of mind.
Let’s say you have a business start-up for body-building supplements. You manufacture and distribute them to pharmacies and grocery stores. You are sure that your product is very safe and that it works. You tested your supplements before selling and have even taken them yourself. But there could be so many unknown exposures not only for you as a business owner, but also for traders, distributors, and sellers of your product. There are a lot of scenarios that you simply can’t expect. Consumers are entitled to file a lawsuit if products or goods purchased have one of the following types of defects:
Design Defects. Design of the entire line of products can cause injury when used as intended, regardless of the fact that this dangerous product was perfectly manufactured.
Let’s say, as an example, that the package was not safe enough, a child opened the lid and ate some tablets. It means that package wasn’t designed perfectly. Another example could be when the tablets are too big and hard to swallow, and someone chokes on it.
Manufacturing Defects. A consumer can file a product liability claim if he or she was injured by faulty products and goods because of a blunder during the manufacturing process.
For example, your supplement doesn’t contain peanuts, but normally are made on equipment that also process peanuts. This time some peanuts (from totally another manufacturing line) turned up to be in the whole shipment by mistake during the manufacturing process. So, this can cause an allergic reaction in people who bought your supplement and are peanut intolerant.
Marketing Defects. If the warning labels or instructions, etc. don’t have enough information on how to safely use and apply the product, then this could become a products liability claim for failure to alert and warn.
For instance, one box of supplements could get lost in storage and later be sold after the expiration date by a pharmacy by mistake. Or, let’s say your label doesn’t tell consumers about not combining your product with other medications or supplements.
You may wonder whether every business needs product liability insurance. You are responsible for the product if your name is on it, regardless of whether you manufactured it or just sold it.
Basically, the business holders on every level from manufacturing to retailing are legally responsible for any damages that those products can cause to your clients or their property. Especially if the company intends to sell products though a third party it should present proof of product liability insurance.
In every single case having product liability insurance is old and secure method to protect your business from huge expenses for any compensation costs in case of a lawsuit.
Veracity insurance Solutions, LLC provides product liability insurance offering specialization, quick service, and quality coverage in all 50 states. We are working with start-up operations and new ventures as well. Veracity created and currently administers product liability insurance programs such as Beauty Products Liability Cosmetics Insurance Program, Vitamin & Supplement Insurance Program, SGMA Sport N’sure Program, and Small Business Unit, etc.
Nobody plans for accidents, and as a responsible business owner, you go to great lengths to ensure efficiency and safety as you manufacture and sell goods. But mishaps can befall even the most careful of businesses and product liability insurance can help protect you against the unexpected.
If you’re in the market for a quality provider, our trusted partner Insurance Canopy offers product liability insurance that delivers specialization, quick service, and quality coverage in all 50 states. They work with start-up operations as well as new ventures, and they work with businesses in fields such as beauty products, vitamins & supplements, cleaning products, cannabis, and many more.