One form of business insurance not to overlook is business insurance. This type of coverage can provide a wide range of protections for today's businesses. If you have not done so yet, take a closer look at how this specific type of business insurance can help you, especially if you sell products or services.
What is Product Liability Coverage?
This type of insurance coverage offers specific protection to your business from risks associated with bodily injury or property damage resulting from a defect in a product that you sold, distributed or manufactured. It can also help with providing coverage for instances in which damage occurs because you failed to provide proper instructions or didn't warn the buyer about the risks related to the item. More so, it can help you with both fees associated with losses and legal defense funds.
What Can it Cover?
This type of product liability insurance can work for many needs. If you fit one of the below criteria, it is quite valuable to have the right amount of coverage in place:
- You manufacturer products of any type.
- You are import products.
- You distribute products.
- You make or sell parts or components.
- You assemble or install products.
- You are a wholesaler.
- You are a retail store that sells directly to the consumer (online or in person).
When you take a closer look at these risks, you can see why this type of coverage is so important. For example, if you sell an item that leads to the choking death of someone, it may be directly your company's financial responsibility to pay for those losses. That can amount to thousands of dollars. If someone uses a product and it fails, and it costs that person in any way (property damage, medical injury, or even financial loss), you may be held liable for their losses.
If you are in any of these instances and you do not have product liability insurance in place, ask yourself whether your company could cover the financial loss from a single claim. What if an entire batch of products caused dozens of claims? With business insurance, you do not have to worry as much about such risks.
We’ve got you covered. Call McKee Insurance Agency at 850-224-6055 for more information on Tallahassee business insurance.