Using or selling products can create risk exposure that lasts long after a customer has paid, for businesses might be held liable if a product causes injury, illness or damage. Product liability insurance helps Massachusetts businesses that use and sell products shield themselves from covered product-related risks.
Product liability insurance is specialized commercial liability insurance that specifically addresses product-related risks. Like most liability insurances, the coverage usually helps pay for attorney fees, court fees and settlements that arise from covered claims.
Product liability coverage might make sense anywhere that products are used or sold, so there are a lot of Massachusetts businesses that could potentially benefit from the coverage. Below are just some examples of businesses that may want to consider including this coverage in their policy:
Freight and last-mile delivery companies sometimes purchase the coverage, too. If a product causes harm and the issue can be linked to a shipping-related problem, a company that transported the product could be blamed.
Any business that’s unsure whether this coverage makes sense for them should contact an insurance agent who specializes in product liability. A specialized agent will be familiar with the coverages that this insurance provides, and they can explain how those coverages might help mitigate a business’ risk exposure.
Product liability coverage may protect a wide range of products, depending on a particular policy’s terms and conditions. Everything from baby products and cheap toys to automotive parts and plastics is likely coverable through this insurance.
One industry that sometimes overlooks this coverage is the food and beverage industry. Both commercial producers and small establishments may be held responsible if there’s a choking incident or major illness. Product liability coverages that focus on the food and beverage industry might cover such incidents. A knowledgeable insurance agent will be able to help businesses in this industry explore suitable policy options.
Many businesses that use or make products have general liability coverage, and this coverage sometimes does provide protection for product-related risks. Not all general liability coverages include the protection, however, and those that do frequently have low limits for product-related claims. For these reasons, it’s often still wise to explore product liability options if a business uses or sells products extensively.
Product liability coverage normally limits its protections to only liability risks that products pose. The coverage usually doesn’t offer protection against damage to products themselves, which is generally considered a property-related risk. A commercial property policy with contents coverage is more likely to protect against product damage.
Product liability coverage can be bought on its own, but it’s more often purchased as part of a package policy. A few business owners policies may offer the coverage as an add-on, and many commercial package policies make the coverage available. Since businesses that need product liability often also need other insurance coverages, these package policies usually make a lot of sense.
For help comparing product liability insurance, contact the independent Massachusetts insurance agents of Garrity Insurance. Our agents can help you compare quotes from multiple different insurance companies since we’re an independent agency, and we have the expertise necessary to help you choose which policy is best for your business.