What Massachusetts Businesses Can Benefit from Having a Product Liability Policy?
Many people are surprised at how many businesses in Massachusetts might be accused in a product liability lawsuit and, therefore, may benefit from having a product liability policy. Any of the following businesses might want to consider getting coverage:
- Manufacturers, because they may be held liable for any manufacturing or production flaws
- Wholesalers and Retailers, because they might be named in a lawsuit filed by an opportunistic claimant
- Transportation Companies, because they may be held liable for any damage that a product sustained while in their possession
- Repair Companies, because they might be held liable for any malfunctions caused by their repair work
Not only are many companies exposed to potential product liability suits, but few companies could afford a suit without suffering significant financial consequences. Product liability claims cost businesses $35,000 on average, and they can be much more.
Does General Liability Insurance Include Product Liability Coverage?
In some rare cases, general liability insurance policies may include product liability coverage. This is quite uncommon, though, and the general liability policies that offer product liability protection usually aren’t written for manufacturers, resellers, transportation companies, or repair companies. Instead, they’re usually offered to churches, law firms, and other businesses that have minimal need for product liability protection.
Businesses that actually specialize in the making, selling, transportation, or repair of products typically aren’t able to find robust product liability coverage in a general liability policy. They normally need to purchase a separate product liability policy to get the protection they need.
How Do Insurance Companies Determine Product Liability Policies’ Rates?
Insurance companies take into account a lot of different factors when they’re calculating product liability policies’ rates. A few items they may consider include:
- What kinds of products being insured
- How many products a business sells
- Who uses the products
- How the products are used
- What the products are made from
- How well written the products’ instructions are
- What claims a business makes about the products
How Much Do Product Liability Policies Cost?
Because so many different factors impact the cost of product liability coverage, it’s impossible to provide a single price for product liability policies. Some policies are extremely affordable, while others are priced substantially higher in order to cover the financial risks insurers assume.
How Can Businesses in Massachusetts Get Quotes for Product Liability Insurance?
Massachusetts businesses can find out how much product liability insurance will cost them by asking an independent insurance agent to request quotes on their behalf. An independent agent can quickly gather the information needed to request quotes, and then they can get quotes from many insurers in the state. Having several quotes provide an accurate range of how much product liability coverage will cost a business, and it makes it easy to select an affordable yet robust policy.
