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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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. |
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