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All about the Product Liability Insurance

If you are thinking of starting your own business or you have a business where you sell products to the public, then you will most likely need product liability insurance. You can click here for more information about the product liability insurance companies through

But what is product liability insurance and why do business owners need it? What does it cover? This article will discuss what this type of insurance is and why it is important for people selling products.

There are three things that originate from most product lawsuits, and these are the three main reasons why companies should have liability insurance for your product:

Weaknesses in Production or Manufacturing

There are people who might claim that there is some kind of defect in the product because of the manufacturing or production process. These are some of the most common cases brought against producers.

For example, the claim from Chinese manufacturers is that there are hazardous chemicals in some of the products they make.

Defect in Design

The second thing that causes the need for this type of insurance is the fact that people can claim that product design is not safe.

Damaged Instructions or Warnings

The last thing that creates the need for product liability insurance is when an item is not properly labeled or that the warning is inadequate. Remember the woman who spilled hot coffee on the lap of a fast food restaurant? Product liability insurance exists so that this type of lawsuit does not occur in more companies.