Product Liability Risks Associated with Certain Products

If you manufacture or sell products you should protect your business in the event that one of your products, or even the packaging it comes in, cause harm or injury to a customer. Product liability insurance protects your company against claims or suits arising from products you manufacture or sell. This coverage is for bodily injury or property damage sustained by a third party due to a product’s defect or malfunction.

The policy is intended to protect you from virtually any type of goods sold to businesses or the public. For example, any machines, foods, medicines, or clothing can be covered. While most product liability suits are filed against manufacturers, sometimes claims are filed against product sellers, including retailers, wholesalers, distributors, and resellers. An Insurance Agent near Boston can help determine if your business can benefit by having this coverage along with many other vital policies.

Strict liability lawsuits can be costly

A manufacturer or seller may be sued on the basis of strict liability, meaning liability in the absence of any form of negligence. Strict liability is not based on fault and an injured plaintiff may win a product liability suit against a manufacturer or seller by proving that the product contained a defect that was dangerous and that no substantial changes were made to the product after it left the seller.

Anytime that your product injures a plaintiff and the injury occurs while the plaintiff is using the product as it was intended to be used you could be found at fault. Misuse of any product, or using it in a way it was not intended to be, will normally result in the case being dismissed.

Losing a judgment of this type can be quite costly since plaintiffs in product liability suits may receive compensatory damages, including payment for all medical expenses and any loss of income, in addition to pain and suffering. Plaintiffs may also be awarded punitive damages along with attorneys’ fees. In some cases, a group of product liability claims is often consolidated into a class action lawsuit.

If your company might be at risk due to products you sell or manufacture you should speak to an Insurance Agent near Boston that can provide you with this essential coverage.