Worcester, Massachusetts businesses that sell products, whether to other businesses or consumers, are frequently exposed to risks well after they’ve sold their products. If a product ever injures someone or damages someone’s property, a business that made or sold that product might be sued by the affected party. Product liability insurance can help protect businesses from potential liability suits that claim products caused harm or damage.
Product liability insurance is a specialized form of liability insurance that provides protection against liability suits related to products. Exact coverages vary, but most policies provide coverage for suits arising from the following issues:
Most policies will help pay legal defense fees and settlements associated with covered suits.
Manufacturers certainly can be blamed for production flaws and poor instructions and, therefore, ought to consider getting product liability coverage. They’re far from the only businesses that can benefit from this coverage, though. Some other examples of businesses that might want a product liability policy include:
In short, almost any business in Worcester, MA that makes or sells products may benefit from the protections that product liability coverage affords. Even if a business’ risk of being found liable is low, it could still be named in a lawsuit and need help paying legal defense fees. Lawyers sometimes will sue any company that handled a product which malfunctioned and caused harm.
Without protection, a business that’s named in a suit could face dire financial consequences. According to one study, the average product liability claim costs $35,000.
Since businesses make all different kinds of products, insurers in Massachusetts offer product liability policies for a wide array of products. Most of the time, a product liability policy will cover all of the products that a business makes or sells. In a few cases, however, a business may need a specialized policy for certain products. An insurance agent can help businesses determine whether they need a specialized policy.
A number of factors can influence how much a business must pay for product liability coverage. A few of the factors that insurers frequently consider when calculating premiums are:
Because many factors affect product liability premiums, it’s difficult to provide a single price (or even a range of prices) for policies. Some products are very safe to use and pose little risk, while others come with inherent dangers that must be taken into account. As a result, some policies are quite inexpensive, and others cost substantially more.
Businesses can get individualized quotes for product liability insurance by talking with an independent insurance agent who serves Worcester, MA. After reviewing what products a business makes or sells, an independent agent can request quotes for policies that cover those products. Since independent agents can get quotes many insurersin Massachusetts, business owners can be confident that they’ll have several different policies to compare and choose from.