Product Liability Insurance in Massachusetts

What Businesses is Product Liability Coverage Right For?

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:

• Manufacturers, which might be named in lawsuits related to production defects
• Distributors and delivery companies, which may be held responsible for issues arising from damage that products sustain during transit
• Refurbishers and repair companies, which might be sued if a repair causes a product to malfunction and cause harm
• Wholesalers and retailers, which may be held responsible for any problems that stem from damage that products sustain while in storage or on store shelves

How Are Product Liability Policies’ Premiums Determined?

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:

• The types of products
• The number of products
• What materials the products are made from
• How the products are used
• Who the products are used by
• What instructions and warnings are included with the products
• Whether the business has previously filed product liability claims

How Can Massachusetts Businesses Obtain Product Liability Insurance?

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.