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Product Liability Coverage - US Based and Global Sales
Product Liability coverage is a section of tort law that determines
who may sue and who may be sued for damages when a defective product
injures someone. No uniform federal laws guide manufacturer’s
liability, but under strict liability, the injured party can hold
the manufacturer responsible for damages without the need to prove
negligence or fault. Product Liability Insurance protects
manufacturers and distributors from exposure to lawsuits by people
who have sustained bodily injury or property damage through the use
of the product.
Get a quote now - Click Here
Why would a California company, purchase Product Liability
coverage?
Any California business that manufactures or distributes a product
in the State of California, the United States or other countries
should have Product Liability Coverage. This is because a products
liability claim is typically based on one or more of the following:
• Design defect in the product
• Manufacturing defect of the product
• A failure to warn the consumer of a design or manufacturing defect
of a product
It is important to realize, that there are often cases in which the
consumer used the product inappropriately, but have been successful
in winning these types of cases. As long as the incorrect use is
foreseeable by you, the manufacturer, your California business could
come under suit.
Example of how Product Liability coverage can protect your business.
1. Perhaps the best example of how Product Liability can protect you
is in the case of not properly labeling or having insufficient
warnings for the consumer to understand the risk. For instance, the
McDonald's "coffee case" in which a woman was burned after spilling
her coffee and sued McDonald's for not having an adequate warning on
their coffee cups. If your California business produces or
distributes a product that does not have an adequate warning posted
on it and your business comes under suit, then Product Liability can
help cover you.
2. A design defect in any product your California company produces
can cause your business to be sued. This is the reason there are
often recalls on certain products. If a company finds that there is
a defect in the design of their product, they can recall that
product. However, if they are sued, then their Product Liability
Insurance can provide the California business with coverage. A
classic example of this was in the case of Ford's 1970 Pinto, in
which several individuals sued the company due to the cars exploding
when rear-ended.
3. A manufacturing or production flaw is similar to that of a design
defect. However, these cases can be more complex. For instance, if
you manufacture a product that uses chemicals and a chemical turns
out to be toxic to the consumer, you could be sued. Your Product
Liability Insurance can provide you with protection in this type of
case.
Carriers that offer Products Liability coverage to California
Businesses:
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We help our clients reduce expenses while maintaining or improving
their over all insurance coverage.
- Average Reduction in Premium 10-20%
- We work for you
- Reduce time managing insurance programs
- Identify Coverage gaps
- Risk analysis
Contact us
Why work with Timothy R. Pine Insurance Services:
- 3 Generations of Insurance Experience
- Choice -Admitted A Rated Carriers
- Dedicated account manager
- 4 Hour turn around on certificates
- Loss prevention program
- Workers Comp Claims Management
- Personalized Risk Assessment
- 98% Client Retention rate
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