This serves as a powerful reminder that having the right commercial insurance in the form of product liability insurance can help cover unpredictable claims.
The damages awarded in this claim, and others like it, include medical costs, compensatory damages, economic damages, and, in some instances, attorneys' fees, costs and punitive damages. While a large company like McDonald’s was in no danger of being financially damaged by the lawsuit, product liability claims can and do put smaller companies out of business.
Product liability is not difficult to understand. Simply put, your small business is responsible for the safety of the goods it provides. And that can be true even if you’re not the manufacturer. No matter where you are in the supply chain, you can be at least partially responsible for consumer safety.
If you are responsible for any of the following, you could be held liable:
There are three types of products "claims" a company may encounter:
Your company’s survival depends on getting your products into the hands of consumers. But you must manage your product liability risk while you’re doing that. What’s the answer?
If your company offers any products to the consuming public, then you need product liability coverage. In many cases, some form of this coverage will be present in the standard commercial general liability or business owners' policy. You will need to confirm this with your insurance professional. Having a clear understanding of your business insurance coverage is essential.
Here are some things to know about your coverage options:
In addition to being adequately insured, here are some ways to minimize your risks:
Product lawsuits and recalls can drain your company’s bank account. Talk to us about protecting your business with a Product Liability Insurance policy that will help you manage your risks. We're independent insurance agents who are free to shop among many competing insurance providers to get you the absolute best deal on quality insurance coverage.
Contact American Insuring Group online today, or call us at (800) 947-1270 or (610) 775-3848.