{"id":582,"date":"2020-11-18T11:25:03","date_gmt":"2020-11-18T05:55:03","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=582"},"modified":"2020-11-18T11:26:15","modified_gmt":"2020-11-18T05:56:15","slug":"4-things-to-know-about-product-liability-insurance-before-you-buy","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/4-things-to-know-about-product-liability-insurance-before-you-buy\/","title":{"rendered":"4 Things to Know About Product Liability Insurance Before You Buy It"},"content":{"rendered":"<p><span style=\"font-size: 14pt;\"><em>Almost all your smart competitors have it!<\/em> You should buy a <strong>product liability insurance<\/strong> policy as well.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Imagine: Your product caused an injury to the consumer or damaged their property and they decided to sue you. The lawsuit can cost you big. And if yours is a new company with limited financial capabilities, this can turn up to be fatal. So, to protect your business against legal liabilities arising due to your products, investing in <strong>product liability insurance<\/strong> is almost a must.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">But hold on!<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Before you rush to your favorite insurance company and shell money out on this policy, there are a few things you must know to make an informed decision. After all, buying insurance policies is unlike anything else. In addition to the <strong>product liability insurance cost<\/strong>, several other factors should be considered to ensure adequate coverage that provides maximum protection to your business.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eccc7b205d2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eccc7b205d2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/4-things-to-know-about-product-liability-insurance-before-you-buy\/#1_The_coverage_you_require\" title=\"1. The coverage you require\">1. The coverage you require<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/4-things-to-know-about-product-liability-insurance-before-you-buy\/#2_What_it_doesnt_cover\" title=\"2. What it doesn\u2019t cover\">2. What it doesn\u2019t cover<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/4-things-to-know-about-product-liability-insurance-before-you-buy\/#3_Minimize_insurance_premium\" title=\"3. Minimize insurance premium \">3. Minimize insurance premium <\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/4-things-to-know-about-product-liability-insurance-before-you-buy\/#4_DIY_isnt_the_way_to_go\" title=\"4. DIY isn\u2019t the way to go\">4. DIY isn\u2019t the way to go<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_The_coverage_you_require\"><\/span><span style=\"font-size: 18pt;\"><strong><span style=\"font-size: 18pt;\">1.<\/span> The coverage you require<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-size: 14pt;\">There\u2019s a difference between a defective product that\u2019s intended to make you look pretty and a defective product that\u2019s used to run million-dollar IT infrastructure. Meaning to say, every product has its distinct scope, relevance and quantifiable impact. They have their nuances which influence how much coverage you should opt for that\u2019s adequate.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">So, when deciding the coverage you require, don\u2019t look at others; don\u2019t look at how much coverage your competitors have; don\u2019t look for external factors. Instead, consider your own products, risks, number of sales you make, and so forth. Figure out your unique requirement that\u2019s based on internal factors.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">In the end, understand that buying the cheapest plan will leave your business exposed to vulnerabilities. But over-spending on the policy would do you no good either. Find the right extent of the coverage. Thereon, audit that number annually as your company grows to ensure adequate <strong>product liability insurance coverage<\/strong> is maintained.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_What_it_doesnt_cover\"><\/span><span style=\"font-size: 18pt;\"><strong>2.<\/strong> <strong>What it doesn\u2019t cover<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-size: 14pt;\">This is an important point that\u2019s often missed by many.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Product liability insurance<\/strong> doesn\u2019t cover everything. It has its limitations. It\u2019s essential that you\u2019re aware of these limitations so to avoid any surprises in the future.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Broadly, it covers bodily injury and\/or property damage resulting from sale, manufacturing, handling, disposition or distribution of a product. The lawsuit revolves around three basic variants, which are product design, manufacturing, and improper instructions.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">For example, if a consumer sustain any injury or their property is damaged, they might sue you. In that case, the legal fees, compensatory costs, and other expenses associated with the case will be covered by this insurance.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">But it has caveats. It won\u2019t cover injuries sustained to the employees during manufacturing. It won\u2019t cover the cost of recalling your products; product recall insurance does that. There are some other costs it won\u2019t cover you.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Being aware of these exclusions is essential.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Minimize_insurance_premium\"><\/span><strong><span style=\"font-size: 18pt;\">3.<\/span><\/strong> <strong><span style=\"font-size: 18pt;\">Minimize insurance premium<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-size: 14pt;\">As a profit-making company, the objective is always to minimize costs and maximize returns. With insurance policies, you enjoy enough room and opportunities to minimize the premium amount.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Assumingly, alongside <strong>product liability insurance<\/strong>, you have also invested in various other policies, which is highly recommended, these measures to reduce your premium amount can make a significant impact on your finance.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">For one, it\u2019s a good idea to do sufficient research to pick an insurer and a plan that suits your budget. Thereon, there are a few measures you can take to reduce the insurance cost. Like, improve your safety precautions and quality control; pay your premium upfront; tweak your deductible; look for discounts (this comes when you\u2019re buying business insurance in bulk); evaluate your policies every year and make changes to it accordingly.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"4_DIY_isnt_the_way_to_go\"><\/span><strong><span style=\"font-size: 18pt;\">4.<\/span><\/strong> <span style=\"font-size: 18pt;\"><strong>DIY isn\u2019t the way to go<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-size: 14pt;\">Understanding the terms and conditions of insurance policies can be a bit challenging. They are complex in structure and come with caveats that require proper comprehension so as to make an effective decision.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">This is why <a href=\"https:\/\/en.wikipedia.org\/wiki\/Do_it_yourself\" target=\"_blank\" rel=\"noopener noreferrer\">DIY<\/a> isn\u2019t particularly a way to go here. It is always recommended to work along with insurance brokers. They can shoulder all your worries and responsibilities, representing you in front of the insurer, ensuring you get the most fitting policy.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Further, they can help you understand <strong>product liability insurance<\/strong> better and take care of various other aspects, like handling the paperwork, figuring out the coverage you require, minimizing the overall costs, and so forth.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">So, if you\u2019re planning to buy product liability insurance \u2013 or any business insurance for that matter \u2013 get help from licensed insurance brokers.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-586 size-full\" src=\"https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2020\/11\/4-things-to-know-about-product-liability-insurance-before-you-buy-it.png\" alt=\"4 things to know about product liability insurance before you buy it\" width=\"640\" height=\"426\" srcset=\"https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2020\/11\/4-things-to-know-about-product-liability-insurance-before-you-buy-it.png 640w, https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2020\/11\/4-things-to-know-about-product-liability-insurance-before-you-buy-it-300x200.png 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<h5><span style=\"font-size: 18pt;\"><strong>Ready to Buy Product Liability Insurance?<\/strong><\/span><\/h5>\n<p><span style=\"font-size: 14pt;\">These are four things you should know before buying your <a href=\"https:\/\/www.plancover.com\/business\/product-liability-insurance\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>product liability insurance<\/strong><\/a>.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Admittedly, there are plenty of other aspects you should consider. The key is to be more educated on the subject. If you lack the basic understanding, you will inevitably make mistakes. And in this segment, irrespective of the mistake \u2013 whether it\u2019s buying the wrong plan, not ensuring adequate coverage, or something else \u2013 the mistakes could be quite costly.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">So, take your time, think things through, and make a smart decision that provides your company with maximum protection if a consumer decides to sue because of your product.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Almost all your smart competitors have it! You should buy a product liability insurance policy as well. Imagine: Your product caused an injury to the consumer or damaged their property&#8230;<\/p>\n","protected":false},"author":2,"featured_media":585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[56],"tags":[59,61,57,60,58],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/582"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=582"}],"version-history":[{"count":6,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/582\/revisions"}],"predecessor-version":[{"id":590,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/582\/revisions\/590"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media\/585"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}