The Advantages Of Having Product Liability Insurance

There are many insurances out there, and all of them are designed to protect you, your home, or your business in some way. Product liability insurance protects you against products that you sell. If the item you sell is defective or otherwise causes harm or injury to another person, this coverage will help take care of those costs. It is good for a variety of companies and products, including electronics, toys, and other consumer items. The policy you choose will determine what is covered and how.

Why It’s Needed

Lawsuits are on the rise, and it seems that many consumers are willing to slander your good name to make a buck. Getting sued may be considered part of daily work life, but it shouldn’t have to be, and you shouldn’t have to pay out of pocket. When someone does sue you, these policies will help fight or pay the settlement.


As a retail shop, you are likely the first one that the consumer will lash out at if they become harmed from a product they purchase at your store. Even if you aren’t solely responsible, you are who they will turn to, so it’s best if retailers have product liability insurance.

Wholesalers, Suppliers, Distributors

Just because you distribute or sell items from your manufacturer to a retailer doesn’t mean that you aren’t still responsible if an item is found to be dangerous or faulty. The retailers are likely to name you, just like you will name the manufacturer. Therefore, you may also require product liability insurance.

Small Companies

Smaller businesses may have less cash flow than corporations, so you may not be able to deal with lawsuits as easily. Policies and coverage can protect you and give a second warranty on your items. If an item you sell is defective, the responsibility may be pushed onto the manufacturer rather than you.

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