• Bodily injury, illness or accidental death to a third party coverage
• Accidental damage to third party property coverage
Businesses that sell or manufacture products are often exposed to possible risks long after their products are in others’ hands. Should a product cause substantial injury or damage, these businesses might be held financially liable and required to compensate the affected party. Product liability insurance policies help shield Vermont businesses from some of these potential risks.
Product liability insurance policies are a specialized form of commercial liability coverage. As a liability coverage, most policies help pay legal costs and settlements associated with covered claims. Usually, policies will begin paying legal costs even before responsibility is ultimately determined.
Many Vermont businesses can benefit from having product liability coverage in place. Broadly speaking, most businesses that manufacture, assemble, deliver, wholesale or retail products ought to consider purchasing a policy.
Businesses that are unsure whether this coverage makes sense for their situation can speak with an insurance agent who specializes in product liability. A knowledgeable agent will be able to make informed recommendations based on a business’ unique situation.
The food service industry is an example of a sector where product liability policy can be useful but sometimes businesses in the industry don’t think about getting coverage. The majority of businesses in food service can benefit from having coverage.
The foods and drinks that food service businesses sell are commonly classified as products, and businesses might be held responsible if those product cause harm. If mishandled ingredients cause a widespread outbreak of a foodborne illness, for example, a restaurant might be sued by patrons who were made sick. Depending on a policy’s specific terms and conditions, it might cover such a lawsuit.
A product liability policy’s exact coverages are determined by that policies terms, conditions, limits and exclusions. Depending on what those details dictate, a policy might offer coverage for the following sorts of issues that cause harm or damage:
As a liability-specific coverage, product liability coverage normally doesn’t cover products themselves against damage caused by physical perils. Protection against loss and damage due to fire, theft and similar risks is normally procured through other insurance options. Commercial property coverage, inland marine coverage and others might be necessary for these protections.
Rates for product liability policies vary, because these policies are used to protect many different businesses and insurers consider a plethora of criteria when setting premiums. Some of the factors that can influence how much a specific policy costs are the:
Even with policies varying in price, however, coverage is generally affordable. It’s almost always more affordable than facing a potentially expensive claim with no protection in place.
For help finding product liability insurance, contact the independent insurance agents at Paige & Campbell Insurance. Our agents have helped many businesses in Vermont procure this coverage, and they have the expertise necessary to assist you with your business coverage needs as well. Since all the agents on our team are independent, they’re able to recommend the best available policies regardless of what insurance company offers them.