Get the right coverage for products you manufacture, sell, or distribute.
What is product liability insurance?
Product Liability Insurance, also known as Products- Completed Operations Insurance, provides solid protection for your business relating to the manufacturing or sale of products, foods, medicines or other items.
Why do you need it?
Product liability insurance is part of a general liability policy, this coverage provides protection against liabilities for losses due to injuries caused by malfunctions or defects in your products. Even if you do not physically manufacture a product, you may be at risk for litigation.
What is covered with product liability insurance?
Manufacturing or production flaws
Flaws that cause unreasonably unsafe defects in the product.
Design defects
Design defects that make the product unsafe for use by the public.
Failure to provide warnings or instructions
These claims arise when products are not properly labelled or have warnings that are not explanatory enough to reduce consumer risks while using the product.
Legal fees
Covers your legal expenses if someone claims that a product you sold, made, or distributed caused property damage or an injury.
Other coverage options may also be included and are not limited to what has been indicated.
Frequently Asked Questions
Is product liability insurance covered under my general liability policy
Generally, there is limited product liability protection under your general liability policy, however it may not be adequate for your business. A Butler Byers risk consultant could help you assess the risk.
How are the premiums calculated?
Premiums are based on the type of products sold, volume of sales and the role of your organization in the stream of commerce.
Why am I responsible for products I sell but don’t manufacture?
The logic here is that there is a stream of commerce that a product goes through from its inception to the hands of the consumer. If your organization had any part in that stream, and as long as the product was defective when it left your control, you can be held liable for any problems that arise.
How can I reduce my risk?
There are several techniques to limit product liability including quality control programs, serial or batch number tracking, keeping proper records, etc. A Bulter Byers risk consultant can help put a plan together to manage this risk.