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Massachusetts businesses that make or sell products are exposed to possible risks long after a product leaves their facility. Should a product cause bodily injury or physical damage, the affected person or organization might seek financial compensation for any losses they incur. Product liability insurance helps protect Massachusetts businesses that make and sell products from many of these potential risks.
Product liability insurance generally protects businesses from claims and lawsuits related to products. Some of the potential issues that policies might cover are:
Policies will typically help businesses pay for legal fees and settlements associated with covered claims (up to policies’ limits).
Because many factors affect product liability policies’ premiums, how much these policies cost can vary a lot. For most businesses, though, policies are affordable -- and cost much less than a product-related claim or lawsuit against a company might. Just defending a business against a claim can be financially devastating for many companies, not to mention how much a settlement could cost.
As mentioned, both businesses that make products and those that sell products may want product liability coverage. Additionally, businesses that transport products might also benefit from having coverage. A few specific examples of businesses that should consider getting a product liability policy include:
As is the case with other insurance policies, insurers take into account many considerations when calculating product liability policies’ premiums. Some of the factors they might consider are:
Massachusetts businesses have a few different ways to purchase product liability coverage.
Some businesses may already have (or be able to get) product liability coverage through a general liability insurance policy. Not all general liability policies have product liability protection, though, and those that do sometimes only afford limited coverage.
The other options are to purchase product liability coverage as a stand-alone policy or through a package policy, such as a commercial package policy. In most situations, it’s more affordable to get coverage through a package policy, because businesses usually need other coverages as well and insurers frequently provide multi-coverage discounts.
To get help determining which of these is the best way for your business to purchase product liability insurance, contact an independent insurance agent in Massachusetts. An independent agent will be able to requests quotes for general liability policies, stand-alone policies and package policies that might meet your business’ needs. Once you have quotes from different insurers, you’ll be able to decide which one provides the product liability protection your business needs at an affordable rate. Of course, an insurance agent will help with this process, too.