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General Liability Insurance in Upton: Are You Covered For Product Liability?

by Lisa Hirbour / October 7, 2016

General liability insurance policies provide a broad range of coverages for businesses, which face a number of potential risks. What particular perils a specific general liability policy offers depends on its terms and conditions, but companies can often find a policy tailored to their particular needs. While there are many coverages to consider when looking at general liability policies, product liability insurance is especially important for companies that sell physical products. If you run an Upton, MA business that sells tangible products, here’s why your business should consider product liability coverage.

General Liability Insurance Upton MA

Businesses That Sell Products in Upton May Need General Liability Insurance That Has Product Liability Coverage

Businesses Can Be Held Responsible for Harm Their Products Cause

As a business that sells physical products, your company can be held responsible for its products. Should they cause harm or damage, your company could be blamed for one of the following:

  • A flaw in the production or manufacturing of the product

  • A defect in the product’s design

  • Inadequate instructions or warnings

Depending on the harm or damage caused, a successful claim against your business could be devastating. Without adequate insurance protection, your company might not be able to pay the settlement associated with a successful claim -- and be forced to close. Even if a claim is unsuccessful, the legal fees could still place a significant financial burden on your company.

Even Companies That Only Sell Products Can Be Held Responsible

Even if your company doesn’t manufacture the products it sells, it might still be held liable for damage or injury caused by the products. Although they aren’t the ones at fault, retailers are sometimes still held responsible because they play a role in the marketing of products. This form of liability is known as strict liability. It doesn’t require proof of negligence to find a retailer at fault.

Sometimes retailers who have successfully been sued on the basis of strict liability can then seek reimbursement the manufacturer of a faulty product. This process can take a long time and isn’t guaranteed, though.

Product Liability Coverage Protects Companies That Sell Products

Product liability coverage is designed to protect manufacturers, wholesalers, retailers, and any other company that sells physical products from this form of risk. Exact coverages vary from policy to policy, but most general liability insurance policies that have product liability coverage provide both legal representation and settlement payments (up to the policy’s limits) for covered product liability claims.

If your Upton business is ever sued for a defective product, product liability coverage could not only help you pay any settlement that’s assessed against your company, but it also could help pay the legal fees associated with fighting the claim. For a small- or mid-sized business, this coverage can be the difference between surviving a product liability lawsuit and declaring bankruptcy.

General Liability Insurance Agents in Upton Can Help You Find Coverage

To find a general liability insurance policy that provides product liability coverage, contact an insurance agent that works with businesses in Upton. As with all insurance coverages, it’s important to find a policy that has terms and conditions that provide the exact product liability coverage and limits your company needs. An agent who has worked with other businesses in the area will be able to help you find a policy meets your company’s insurance needs.

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