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Why Your Company Needs Product Liability Coverage

Why Your Company Needs Product Liability Coverage

Smart business owners recognize the need to have a comprehensive insurance policy to cover the many potential liabilities that companies face. For companies engaged in manufacturing, product liability coverage in OC is an essential component to such coverage. If you make things in Southern California, your company should have product liability insurance.

Courts hold companies responsible for product defects in each of the following three ways. First, if a defect in manufacturing causes bodily injury or damage to property, the company that made the product can be held responsible. Second, if the company manufactured the product correctly, but the overall design was bad enough to cause injury, the company can be held legally liable. Finally, if the company failed to include appropriate instructions or warnings and somebody was injured while using the product, a court can order the company to pay significant monetary penalties.

Because of the broad legal exposure for companies in the manufacturing sector, many business owners choose to purchase product liability coverage. Since businesses don’t even have to be at fault to be sued, executives often opt for coverage to protect the business from costly lawsuits.

For firms in the manufacturing sector, product liability insurance in OC can be the best way to protect the company from a costly lawsuit.