Ask any kid what their three favorite holidays are, and in most cases the child is likely to include Halloween as one of them. And with good reason. They get to dress up and get lots (and sometimes lots and lots and lots) of candy. And it’s not just a holiday for kids. Many adults, too, get in on the fun to make Halloween one of the most exciting holidays of the year.
This time of year can also be a good time to remind those people or businesses you represent as an insurance agent to get product liability insurance. Many businesses, including those that manufacture, import, distribute, and sell halloween costumes, candy, and other products face unique exposures during this time of year. In some cases, these businesses make the majority (or sometimes all) of their revenue during the Halloween season and having all of that revenue wiped out because of an accident would be detrimental to the company.
- In 2011, a major retailer recalled a Halloween costume mask because of danger of suffocation. Two years earlier, that same retailer recalled a Halloween flashlight due to burn hazards.
- Even companies that don’t directly manufacture or sell Halloween products can face exposures. In 1991, a woman created a costume out of cotton balls that were manufactured by a major U.S. company. The costume caught fire and the person sued the company for damages. Initially, the person was awarded $625,000. Though this judgment was later overturned, the company still had to spend thousands of dollars on legal fees.
- In 2015, a company that manufactured and sold costumes is facing a lawsuit after an infant was injured when a thread in the bootie wrapped around and cut into his big toe.
- In 2010, two major food companies recalled two of their most popular major candy brands. The first company recalled the candy because of allergic reaction hazards, and the second company recalled the candy because of “traces of foreign particles” that may have got in the candy.
These are just a few examples of real-life instances where companies needed product liability insurance to protect their finances during a lawsuit, and with an increased litigious society, the likelihood that your client will be sued at some point in their career will only increase.
Veracity Insurance has the product liability insurance that your clients need to safeguard their business, whether they are Halloween products or simply everyday products. Highlights of Veracity’s Product Liability insurance policies include limits up to $100 million, occurrence and claims-made forms, and coverages that are available worldwide. In addition, Veracity’s policies are available to new ventures and startups, something that our competitors often overlook. Visit our website at veracityinsurance.com or call us at 866-395-1308 to learn more or to help your clients get the coverages they need.