Product liability insurance is very important! All manufacturers want to manufacture defect free products, but the only way to guarntee that you protected for product liability is by insuring your business with product liability insurance.
Consumers have the right to file a lawsuit if products or goods purchased have one of the following types of defects:
– Design Defects: Even if a product is perfectly manufactured and used the right way, people can still injure themselves.
– Manufacturing Defects: Sometimes due to machinery, processes or stock, a product is faulty. Consumers can sue if they are affected by a faulty product.
– Product Labeling: If the product was perfectly manufactured, but the instructions and labelling are inadequate and in turn cause injury to a consumer, they have the right to file a lawsuit.
– Misleading Marketing: If the product does not do what it the manufacturer says it should do, this is also grounds for a lawsuit.
You are responsible for the product you manufacture if your name is on it, regardless of whether it was manufactured or sold by you.
No matter how perfect your manifacturing business is, having product liability insurance is a tried and tested, secure method to protect your business from huge losses resulting from compensation and lawsuits.