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Product Liability


There’s a misconception, especially among small businesses that they don’t need product liability insurance. Or they feel it’s too expensive. But the minute you start selling a product, you are at a risk of coming across a product liability claim.

In the eyes of the law, any business supplying consumable or usable products to the customer/the third parties, is liable to any bodily harm or property damages caused by it.

Even sickness caused by a consumable food or beverage, and the issue is traced back to the company, the business owners can be found responsible to the damages. The four main and common liability claims are design defect, manufacturing defect, marketing defect, consuming defect.

Product liability lawsuits can be very expensive. In extreme cases, it can force a smaller company to shut down completely. Having a specialized product liability insurance will cover your massive legal fees if your company is found guilty of the damages and losses occurred to the third parties.