Most businesses deal with products or services. A business can be the manufacturer, the wholesaler or just the retailer who makes sure that customers get the products.
What product liability insurance does is to offer compensation claims and costs of any damages or injuries to customer or users caused by a product that is manufactured, supplied or even designed by a particular business organization.
A business that designs, manufactures or even supplies products to the public should get this insurance cover because it will be of great help in case the end users suffer any sort of damage courtesy of that product. If you did not design or manufacture that product but you supplied to the public you will also be held accountable in case of damages especially if the name manufacturer cannot be traced. Also if the name of your business appears in the product but you did not manufacture it then you are also held accountable in case of damages
As a business entity, the product liability insurance covers you against compensation claims for injuries or damages suffered as a result of use of the product, damage of property caused by the product or any fault in the product that was not singled out by the quality control system of the manufacturing team. This covers is especially given to the manufacturers of the product.
As a distributor of the product you will be given the compensation claims against your business if you can proof that, the product was indeed faulty when it came from the manufacturer, and also when you gave the user relevant information regarding the use of the product and warned the user in case of misuse of the product.
Product insurance policy will also cover you for guiding the user what to do in case of various occurrences regarding the product. For example if the product is a medication you as the distributor should warn of the expected side effects, misusing the medication and what they should do if they see any untoward actions of the medication. As a distributor you should also show that you have terms with the manufacturer of returning any product that is faulty and does not meet the standard required.
Buying product insurance liability is easy. All you need to do is approach an insurance company directly or the so many insurance brokers available. Just make sure they are certified by the particular insurance company they claim to represent.
Product liability insurance covers all business even online business. The premise does not matter either, be it home based business, high street retailer or even the largest manufacture, you will be covered.
It is always wise to read the policy document very well so that you understand what you are being covered for. Some insurance companies will always demand that you meet certain requirements like having a quality control system that ensures quality production so just make sure you know and understand what is required of you before committing to that policy.