Products liability Insurance refers to the liability of all parties along the chain of manufacture of any product for damage caused by that product. This can include the true manufacturer, assemblers, distributers, and retail sellers. Claims are typically brought by the consumer who is harmed by
Product manufacturers, assemblers, distributors and retail sellers are vulnerable to product liability (or strict liability) litigation. This includes class actions, as a result of alleged defects in the design or manufacture of products, breach of warranty, a failure to warn, and when negligence or improper use in involved. A person is generally held responsible for the
damage and loss caused by his/her acts and omissions regardless of culpability (or fault in criminal law terms). Regardless of the circumstances or culpability, the product manufacturer, distributor or seller is typically brought into the action and will require coverage for loss payments and defense. Product liability insurance provides protection to those organizations facing product liability exposure.
Product Liability Insurance Capabilities
We provide products liability coverage on a wide range of specialty lines accounts on a claims made basis. Claims made coverage provides lower premiums, which is particularly beneficial to new companies in a start up phase. Our minimum premiums are as low as $2,500 on some accounts. We also consider discontinued products and tail coverage.
Additionally, we can provide more unique types of coverages such as product recall. A product recall can radically diminish a company’s brand name, productivity and effectiveness. To curtail the costs and mitigate the risks associated with such an incident, companies must proactively assess and manage their product recall risks. For particularly hard to place accounts, our markets may make use of large deductibles and self-insured retentions or (“SIRs”).
Who do we provide Products Liability Insurance to?
• Small to large sized accounts
• Hard to place accounts
• New products
• Companies that have had claims
• Companies going through a change, such as a sale
• Companies experiencing rapid growth
• We can customize coverage for a particular insured’s needs. Examples include:
o Straight products only
o Full general liability including products
o Product Liability with vendor and/or product recall coverage
What is general liability insurance?
GL insurance protects your business against financial loss resulting from claims of bodily injury or property damage caused to others by you or your employees. A wide variety of exposures from various sources can give rise to a liability claim. Three major sources of liability for businesses include:
Under the Consumer Protection Act of 1987, a manufacturer or supplier of a product is responsible for the damages their product may cause a consumer. Source: FDIC
What is Products liability insurance?
Product liability exposures exist when you manufacture, distribute or sell a product. Imagine you’re a furniture manufacturer and your are sued by the parents of a child that experienced brain injury due to suffocation in a crib that your company made. Your products liability insurance would pay for the cost of your defense, in addition to the actual damages awarded by the court.
What is Premises liability?
Premise liability exposures exist when you own, occupy or use a premise. So, if a client slips and falls on the leaves you didn’t clean up at your store entrance and you were found negligent, premises liability insurance will pay for defenses costs and damages due to the injury.
What is Completed Operations liability?
Contractors have significant liability exposures relating to the work a contractor has performed and finished. For example, a three level walkway at a hotel gave way during a concert and many people were killed. When the contractors that constructed the hotel were sued for negligence, they were protected by the completed operations liability coverage in their general liability policy.
Who should have general liability insurance?
All businesses, including home-based LLCs, benefit from adequate general liability coverage. And just because you work from your home doesn’t mean business liability insurance isn’t essential. A client who comes to your house for a meeting could slip and fall, and if you don’t have business liability insurance in place, you can be caught without protection.
Some Products Liability Insurance Facts
According to a July 2007 national survey*, the top ten consumer products to cause injuries that resulted in emergency room visits were:
1. Stairs, Ramps, Landings, Floors – 2,324,938
2. Beds, Mattresses, Pillows – 560,129
3. Bicycles & Accessories – 515,871
4. Basketball – 481,011
5. Chairs, Sofas, Sofa Beds – 476,109
6. Football – 455,193
7. Bathroom Structures & Fixtures – 330,102
8. Non-glass Doors, Panels – 321,665
9. Tables – 309,252
10. ATV’s, Mopeds, Minibikes – 278,671
*U.S. Consumer Product Safety Commission National Electronic Injury Surveillance System (NEISS). The 2007 NEISS estimates were produced from a sample of 96 hospitals, including children’s hospitals.