What is product liability Insurance?

Product Liability insurance provides coverage for claims against manufacturers and sellers of products to the general public like tires, power sports, tools, dietary supplements and other goods. It offers protection to manufacturers or sellers for losses or injuries to a user or bystander caused by a defect or malfunction of the product, and, in some instances, defects in the product’s design or inadequate warning labels. When it is part of a Commercial General Liability policy, coverage is often referred to as Products-Completed Operations insurance. Below are the most common scenarios that can result in a Product Liability claim.

Why your company may need product liability insurance?

If your company manufactures any kind of product, from tires to engines, computers to clothing, it could easily find itself on the wrong side of a lawsuit by a plaintiff claiming your product(s) caused some kind of injury or damage. In today’s litigious society, it is not even necessary for you to be the manufacturer of the product. Sellers are often sued alongside the manufacturers.

Product liability exposure lasts as long as the product is in use. Someone may be injured or damage may result from use of the product years after it was manufactured and the product may no longer be in production. Product liability insurance should be kept in force as long as the products are being used and could cause injury or damage. Because of the continued liability exposure, insurers require insureds to provide detailed information about discontinued products.

The basic premise of most product liability lawsuits is that the product manufacturer or vendor failed to take appropriate steps to insure the product was safe and sound. It is impossible to eliminate all hazards in connection with many products. No matter what you do, someone could fall off a ladder or burn themselves with a hair dryer, and so forth. To show that you did everything possible to prevent such injuries, it is critically important to communicate with buyers and users of the product about such hazards. The thing to remember is that if there is a lawsuit, your best defense is to prove you took all reasonable measures to assure no one would be injured.

How much it cost?

Total Insurance Premium = Total Estimated Annual Sales x Rates (per $1000)

Who do we help cover?

Tire manufacturers, importers, and distributors
Retread tire manufacturers and distributors
Wheel manufacturers and wheel importers
Aftermarket parts suppliers
Motorcycle, ATV/UTV, go-cart and scooters manufacturers, importers, and distributors
Generators and hardware
Inflatable products wholesalers
Bicycle wholesalers
And other hard-to-insure industries

Contact us today for more information

Your Product liability experts in the tire
and motorsports industries