What Types of Products Do Product Liability Policies Cover?
Depending on their terms and conditions, product liability policies might be drafted to cover a wide range of products. Everything from kids toys and common housewares to furniture and power tools may be insurable through a well-crafted policy.
Even foods and beverages can usually be covered by a suitable product liability policy. Although these aren’t necessarily what most people think of when they consider products, foods and beverages are still goods that companies make and sell to consumers. If a meal at a restaurant or an energy bar makes someone seriously ill, the restaurant or food manufacturer that offered made it could potentially be held liable.
Foods and beverages show just how diverse the products that product liability policies cover can be. Any business that possibly makes or sells a product should talk with a knowledgeable insurance agent to see whether their goods justify getting this form of insurance.
What Kind of Claims Do Product Liability Policies Cover?
The exact claims that any one product liability policy covers are determined by that policy’s terms, conditions and exclusions, but there are many claims that these policies may cover. Some of the more common risks that businesses frequently can get coverage for include:
- Flaws in design
- Defects in manufacturing
- Errors in production
- Insufficiencies in warnings
- Errors in instructions
Do Product Liability Policies Cover Damage to Products in Stock?
Product liability policies generally are liability-only policies that don’t normally protect property. The usually don’t cover damage to products that are kept in stock.
For coverage against perils that could damage or destroy products, businesses usually need a commercial property insurance policy that includes contents coverage. Agents who are familiar with product liability policies can likely also assist with commercial property policies, and the two kinds of policies can often be purchased together even though they remain distinct protections with their own definitions.