Products liability coverage is a type of insurance that is available for businesses. This type of insurance provides coverage against claims involving injuries, property damage, and other losses caused by a product that is sold or manufactured by that particular business.
Generally, the business will pay monthly premiums to an insurance company that provides products liability coverage. These are often insurance companies that provide commercial insurance and other types of business insurance packages. Small business insurance may include some type product liability coverage as well.
The scope, subject, and amount of coverage provided in a products liability insurance package may vary according to the product involved as well as individual insurance company terms. Generally speaking, products liability provides coverage for:
- Property damage
- Bodily injuries
So, for instance, if someone tries to sue a company that manufactures lawnmowers due to property damage, the products liability insurance coverage may cover various losses associated with the claim. This might include court costs, legal fees, and some damages. Again, the extent of coverage may depend on the terms negotiated by both parties.
Products liability insurance does not provide immunity from all acts and is not really a defense to defective product liability in general. For instance, products liability insurance may not cover instances where the company was blatantly reckless or negligence in their handling or manufacturing of a product. Also, the coverage may not apply to intentional acts that amount to violations.
The company must also conform to basic federal and state laws when it comes the health and safety regulations associated with that product. Having products liability insurance is not a defense to defective product liability violations.
It can sometimes be difficult to understand how products liability coverage works. You may wish to hire a qualified business lawyer if you need assistance negotiating or reviewing terms in a products liability coverage contract. Your attorney can help represent you during the negotiation process, and can help review any documents as needed. Also, if you need to file a complaint involving liability coverage, your attorney can represent you in court as well.