Yes, you’re selling an incredible product. But what if it falls short in delivering what it promises? What if it fails at consumers’ expectations? What if it causes any damage to others? Someone may decide to slap a lawsuit against your company. And legally defending yourself could be quite costly. This is why almost everyone who sells their own products choose to buy product liability insurance. And this is why you should buy it too.
The insurance protects the manufacturer, distributor, retailer, and wholesaler against legal claims. Here are four instances where product liability insurance can come to your company’s aid: 1. The product caused bodily damage to the customerA few years back, a very renowned smartphone maker sold its flagship device with defective batteries. It caused bodily damage to many users. The company had to deal with many lawsuits.
If your product causes any type of physical harm to the consumer, you could very well be sued for it. 2. The product didn’t give the desired resultYour product said it’s going to solve a particular pain-point but it failed at it. It didn’t deliver the same result that the consumer was hoping for. In such a case, you might get sued as well.
3. The product caused damage to the customers’ propertySay you sell candy. The customer dropped that candy on their favorite (and expensive) handbag, which left a mark on that handbag.
Even a small instance like this can bring you lawsuits. In fact, something like this is very common wherein the product causes damage to the consumers’ property and the maker of the product has to deal with legal claims. Buy Product Liability InsuranceThere are many other instances where product liability insurance – along with other policies like commercial general liability – can save your business from expensive legal costs. So, if you sell products, consider buying the said policy. In addition, also explore other small business insurance policies as well. Depending on the kind of business you run, the risks you’re exposed to, and various other factors, you may require other small business insurance policies as well. Consult a licensed insurance broker, discuss your needs, and buy fitting business insurance to shield your business against lawsuits from customers, as well as other stakeholders.
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You bought liabilities insurance to keep yourself, your business and other relevant stakeholders safe from legal claims.
Similarly, investing in group health insurance plans is just as important now. There are numerous tangible and intangible benefits of getting your employees insured – particularly today when attention (read: concerns) around healthcare cost is very high. It boosts employees’ performance; they are more satisfied with their job; your employee retention improves; it builds a healthy workplace culture. So, if you haven’t already, buy the right group health policy for your employees. Here are 4 tips to help you with that:
These are 4 simple but effective tips to buy the right group health policy for your employees. Remember, getting your team insured is just as important as buying liabilities insurance. Don’t treat it as optional; it has many advantages for your business that you don’t want to miss. Of course, the type of business insurance policies you should buy depends on the kind of business you have. Every business, after all, has its own unique needs and requirements.
But that said, there are a few types of insurance policies that you should have anyway to ensure maximum protection and prosperity to your business. In that context, here are three business insurance every small and medium-size business should ideally have:
These are four must-have insurance policies every SME should ideally have. Indeed, there are many other types that you should explore as well. As mentioned earlier, different businesses have different needs. Depending on your need, you may need to buy other types of insurance as well. The first step is determining your risks and then figuring out what insurance is the right fit for you. Thereon, explore different plans from reputed insurers and pick one that suits your requirement and budget. Consider getting help from a licensed insurance broker. They can help you with this process, assisting you in making the right decision and even customizing your insurance plan per your needs. Insurance companies are running a business themselves. They work for profit. They do several things – within the ethical purview – to maximize that profit. In that, consumers are often left confused and ill-informed which leads them to make a decision that is more financially beneficial for the insurer and not necessarily the one insured. This is exactly why teaming up with insurance broker is always recommended. They are experts in the subject with extensive experience.
Unlike insurance agents, brokers don’t work for any particular company. So, these brokers in a way represent and advocate for the to-be-insured in front of the insurance companies; they ensure their clients’ needs are met and that they are getting the most out of this deal. Moreover, filing for a claim is not always the smoothest experience. Having an expert by your side who understands the process of filing a claim inside-out makes things much simpler and quicker for you. Continuing with the earlier point, as a profit-making entity, there are many things business insurance companies won’t tell you. It is on to you to unearth the details and insights – and ask the right questions – to find out which policy is the right fit for you, what kind of coverage do you require, what are the terms and conditions of the policy, and so forth. Here are a few things business insurance companies might not tell you:
It is your responsibility to do your homeowner and be adeptly informed before making any decision. Irrespective of the kind of policy you choose, it comes with a cost. So, you want to take your time in the decision-making. Moreover, since it matters the well-being of your company against lawsuits, it calls in for more caution. Preferably, contact the right insurance broker and seek end-to-end help. Business insurance policies come with a cost. So, you cannot simply buy every policy you come across. You need to pick the ones that map to your needs, requirements, and risks. This demands proper research on your end to make an informed decision that’s financially fitting to your business. In that context, to help you with that, here are 3 questions you should ask before you buy business insurance policies:
1. “Do I really need it?”There are many types of business insurance policies. You don’t necessarily need them all; some of them could be quite irrelevant to your business model and requirements. So, to prevent overspending or improper use of your resources, you should ask if you really need any particular insurance. Remember, maximum protection is important, unnecessary protection is not. Consult insurance broker to assess your needs and risks.
2. “Is the coverage sufficient?”Say you purchased E&O insurance, which is often considered essential for many businesses. But does that policy provide adequate coverage? Have you under-anticipated the legal cost in case if someone decides to sue you? Many business owners opt for the cheapest plans, which leaves them vulnerable.
3. “What are the exclusions?”Almost every type of business insurance policies come with exclusions. For instance, continuing with the previous example of E&O insurance, the policy won’t cover frauds, criminal acts, illegal profits, and more. Staying aware of such exclusions will eliminate the chance of any surprises in the future.
4. “Is this the best deal I can get?”We now have many insurance companies in the game. They all have their own distinct offers. This high competition among insurers is a great news for consumers. You will discover many lucrative deals. So, before picking any insurer, do ask if this is the best deal you can get or is there someone else who’s offering the policy at a better price point.
(Of course, it is recommended to go with renowned insurance companies who are more trusted vs. someone less reputed, even when the latter offers cheaper plans. Working along with a good insurance broker will help you explore, discover, and buy better policies from top insurers.) 5. “Is my business safe now?”After you have purchased any business insurance, this is a question worth asking. You and your business may still be exposed to critical risks of costly lawsuits. If yes, many policies come with extensions; you can purchase a relevant extension to gain more protection. If needed, you should ideally invest in another business policy. As mentioned, there are many business insurance policies; buying one won’t be enough.
ConclusionThese are five questions you should ask before buying business insurance policies.
Investing in an insurance plan is much more than just buying. You should invest enough time in the process to find the best policies that provide enough coverage within your budget. Making informed decisions based on what you need is the key to make the most of policies; it’s the key to provide complete protection to yourself, your employees, other stakeholders, and your company against a lawsuit. |
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