New products are bought every day by consumers just like you, but sometimes these products may contain flaws or defects. That’s why as consumers, you should always be mindful of warning labels or recalls companies have issued for their products. Any mistake made in either the production or manufacturing of a product can cause you or a loved one significant injury or even wrongful death. If you are injured by a defective or dangerous product, then you can seek compensation by filing a product liability claim (also known as a personal injury claim) and hiring a knowledgeable products liability lawyer can help. To protect themselves, businesses have the option of purchasing products liability insurance. Products liability insurance covers the business in the event of legal action taken against them from bodily injury to persons, or damages caused by defects in goods, and it will help pay for medical bills for people who have been harmed by their products.
Why Do Companies Need Products Liability Insurance
In order for you to understand the need for products liability insurance, you need to understand the potential liability. There are generally three types of products “claims” a company may face:- Manufacturing or Production Flaws -- A claim that some part of the production process created an unreasonably unsafe defect in the resulting product.
- Design Defects -- The design of the product is inherently unsafe.
- Defective Warnings or Instructions -- A product wasn’t properly labeled or had insufficient warnings.