General liability insurance offers a broad range of coverages, which protect businesses from a number of potential perils. The particular coverages that any one general liability policy offers can vary, but businesses can usually find a policy that has coverages tailored to the business’ needs. One particular coverage that businesses may want to consider getting is product liability coverage. Here’s a look at what this coverage provides, what sorts of businesses need it and how your Massachusetts business might procure it.

Should My Business Look for a General Liability Insurance Policy That Has Product Liability Coverage?

Product Liability Coverage Helps Protect Against Product-Related Claims

Product liability coverage is designed to help protect businesses from product-related claims. If a product causes physical harm or property damage, the affected party might seek financial compensation from the business that made or sold the product. This coverage typically shields businesses from these types of claims, helping pay for legal defenses and settlements associated with covered claims.

Specifically, there are three main potential issues that product liability coverage might cover:

• Flaws created during the manufacturing or production of a product

• Defects in a product’s design

• Insufficient warning and instructions being included with a product

Many Businesses May Want Product Liability Coverage

Lots of businesses may want to protect themselves with product liability coverage, for product-related claims aren’t only filed against manufacturers. As mentioned, both businesses that make and those that sell can be held liable for harm or damage caused by a product. In some situations, even transportation companies can be sued.

Some examples of Massachusetts businesses that might benefit from this coverage include:

• Manufacturers, as they may be held liable for any production or design flaws

• Freight companies, as they might be held liable for issues that are caused by damage products sustain during transit

• Repair companies, as they might be held liable for any issues related to repairs they make

• Wholesalers and retailers, as they may also be named in a product liability suit

Even if the risk of a product-related claim seems low, it’s often wise to get product liability coverage. Coverage is often affordable, and it’s almost always less than the potential cost of a claim. Even a claim that’s unsuccessful can cost a business thousands of dollars in legal fees, and a successful one could severely affect a business’ finances. In some cases, businesses that don’t have coverage and are sued may have to file for bankruptcy.

General Liability Insurance is Just One Way to Get Product Liability Coverage

Businesses that decide product liability coverage is a wise investment have a few options available to them.

Product liability coverage is available through some general liability insurance policies, but not all general liability coverage includes product liability coverage. Additionally, the policies that do offer product liability coverage sometimes provide a limited amount of protection. 

 Alternatively, businesses can frequently get product liability coverage as a stand-alone policy or through a commercial package policy. A stand-alone policy can be added to almost any insurance portfolio, and it’ll be specifically designed to provide protection against product-related claims. A commercial package policy gives businesses access to single product liability-specific policies (as opposed to general liability coverages that include product liability protection), while combining the product liability coverage with other coverages (such as general liability coverage).

For some businesses, procuring product liability coverage through general liability coverage is sufficient and makes sense. For other businesses, a stand-alone policy or commercial package policy offers better protection and/or lower premiums. Which of these options is best for your business will depend on the amount of product liability protection your business needs and what other insurance policies it has.

Work with an Independent Insurance Agent

If you think your business may benefit from product liability coverage, contact an independent insurance agent who specializes in commercial policies offered to Massachusetts businesses. They’ll be able to help you consider what product liability protections your business needs, and they can help you find the most suitable way to get this coverage. Regardless of whether a general liability insurance policy, stand-alone product liability policy or commercial package policy offers the most robust and affordable product liability coverage, an independent agent will make sure your business finds the best option available.