Product liability insurance protects a business against losses due to product liability or defective product claims. These can happen for instance if a purchaser of the company’s product gets injured or suffers other types of losses due to the use of the product. For instance, suppose that a kitchen appliance malfunctions, causing injury to the consumer. If they should decide to file a claim against the manufacturer, the product liability insurance might cover some of the costs or losses associated with the claim.

There may be various terms and specific limits as to what the insurance may cover. Also, product insurance liability does not relieve the manufacturer from any legal or criminal liability caused by a violation of health and safety laws.

What Are Some Common Product Liability Insurance Disputes?

As in any business insurance situation, there may be disputes between the business company and the insurance provider. Some common product liability insurance disputes may include:

  • Disputes over the amount covered
  • Disputes over monthly premium payment amounts
  • Late or missed payments
  • Breach of contract (for instance, not covering losses according to the contract terms)
  • Contract ending and renewal disputes

For instance, a common dispute is where the insurance company is obligated to cover certain expenses in relation to a product liability claim. If the company refuses to cover such costs, it can lead to a separate legal issue.

What If I Have a Dispute over Product Liability Insurance Terms or Contracts?

Disputes over product liability insurance can often be complex. If you or your business is involved in a business insurance dispute, you may wish to take steps such as:

  • Review your contract: This can often reveal important information that might help to clarify the dispute.
  • Hire a lawyer: Some insurance disputes can be complex and may require the assistance of a legal professional.
  • Compile related documents: Be sure to gather all related documents, such as sales receipts, claims from consumers, and intake documents. These can be useful as evidence in an upcoming legal claim.

Lastly, be sure to review your state’s laws on business and commercial insurance. Each region may have slightly different rules, and this can affect the outcome of an insurance or liability dispute.

Should I Hire a Lawyer for Help with Product Liability Insurance Issues?

Product liability insurance is an important part of maintaining and operating a business. Having this kind of insurance can help save costs in the long run. You may wish to hire a business lawyer if you need help reviewing a liability contract. Also, if you run into legal disputes regarding your coverage plan, your attorney can help you file a complaint and can represent you during court meetings.