Product Manufacturing

Product manufacturing is a business that needs product liability insurance. Just like any typical business insurance program, you must have workers compensation and property insurance. These are the common elements that insurance programs provide and this is where product liability insurance comes in. Since there are many risks involved in product manufacturing, product liability insurance covers the future damages from using the product.

There may come a time where product manufacturing causes harm to consumers. It could be an E. coli outbreak, which would force a meat processor to recall all of its meat. Perhaps a mechanic develops lung cancer caused by inhaling asbestos dust while working on the brakes of a vehicle. Perhaps a child died from swallowing small toy part. With product liability insurance, manufacturers are prepared for the negative outcome that is caused by their products.

Manufacturers must assume liability if any of their products cause harm to people and the outcome could result in a lawsuit. With product liability insurance, it will cover on-premises slips and falls, although this does not cover property damage or injuries caused by the product. If you are a manufacturer that wants complete coverage in case of accidents, it is a wise decision to choose a comprehensive liability insurance plan for product manufacturing as well as unforeseeable future accidents resulting from using the product.

Product manufacturing includes any type of foods, metal, rubber, plastic and wood products, leather goods and textiles. Defective products may cause property damages, bodily injuries and deaths to many American consumers. It has been reported that the liability insurance claims have reached over $700 billion each year. The high number of claims is one of the main reasons why product liability insurance is crucial for manufacturers.

When consumers are injured by products, even if it is due to product misuse, lawyers usually resolve the issue by suing the manufacturer, and they try to hold them responsible for paying substantial legal fees as well as compensation fees for the injured. Well-designed product liability insurance will protect product manufacturers from paying attorney’s fees to defend their business, and this includes all damages if they should lose the case in court.

Product manufacturers can also benefit from this insurance coverage if their products are recalled from the marketplace. If these products are deemed unsafe, all of the products must be recalled and destroyed. Product liability insurance extends protection to the manufacturers for lost income due to the recall. There is also specialized insurance that covers the manufacturer’s rights for patents, trademarks and copyrighted products. The insurance will also provide you with sufficient funds to pursue people who violate your intellectual property rights.

For more information call us today at 888-438-2683 or click on the Apply Now! button at the top of the page for free evaluation.