As a business owner, you want to do what’s best for your company. This means making and selling products that customers want and/or need. But it also goes beyond that. You need to make sure that you protect your business with product liability insurance.
No matter how in-demand your product is, if it causes injuries or damages to your customers, the chances of you getting sued increases. If you miss out on the right insurance coverage, you could wind up paying these expenses out of pocket. That could mean the destruction of your company. To ensure that you stay open, you need to protect yourself.
How To Use Product Liability Insurance
Having product liability insurance is a great way to reduce your costs if you ever find yourself dealing with a lawsuit. This coverage is in place to pay for the medical expenses or repair bills that might arise if your product was responsible for a customer’s injuries or other damage. This insurance also covers any legal fees that your business might incur. To ensure that you are using this coverage as best as you can, consider following the tips listed below.
1. Report All Claims
No matter how large or small, many product liability insurance policies require you to report all claims, including those that fall under the deductible limit. If you don’t report any and all claims, then your policy might exclude coverage issues. The minor claims that you report won’t yield any remuneration for losses, but they will keep you in compliance with the legal requirements that are included in the insurance policy for product disclosures.
2. Work With An Insurer That Quickly Provides Certificates Of Insurance
When it comes to certificates of insurance, these are in place to provide proof that you have product liability insurance. The sooner you get these important documents, the sooner you can prove that your products are covered.
More often than not, certificates of insurance are used throughout the supply chain, including every stage in a product’s cycle right from manufacturing to selling. Depending on the coverage you need, make sure you have certificates for every aspect of your business.
3. Find The Right Level Of Coverage
Finding the right product liability coverage for your business depends on many different factors, including the industry you are in, the types of products you manufacture and/or sell, how much revenue your company makes, and how much coverage you want and/or need.
You don’t want a product liability policy that is a one-size-fits-all. This has the potential to leave you under or over-insured both of which will wind up costing you. If you are underinsured, your policy may not be able to cover the claim proceeds, which means your business will be liable for paying what the insurance doesn’t cover. If you are over-insured, then you will wind up paying more in premiums every month than necessary.
Therefore, to find the right level of coverage for your business, it’s in your best interest to talk to a professional. They’ll be able to put a policy together that will fit your budget and make sure you are covered if you ever get sued.
Cover All Your Bases
You want to do what’s best for your customers, and even though you have no intention of your product causing injury or damage, you never know what could happen. Make sure you protect yourself by having product liability insurance. Finding the right policy may take some time, effort and assistance from a professional, but it’s worth it to cover all of your bases.