What Is Product Liability Insurance and How Much Do I need
Being a manufacturer comes with a lot of responsibilities in the field. One of them is ensuring your customers always have contentment. However, there are unfortunate incidences when there are defects in the products that cause harm to a user.
At such times, you can be sure of the affected parties filing a claim against you. There is no better way of being ready for this than taking product liability insurance. The question is, how much insurance do I need for my business to have significant coverage?
What is Product Liability Insurance?
Before going to the cost to opt for, know what product liability insurance is? It is a type of business insurance that shields you in an event where a party develops problems after using your product. It caters to the compensation claims which he or she may file against you. Even as a retailer or a stakeholder of a distribution chain, you may be liable as well.
Considerations for Choosing Product Liability Insurance
Getting professional help from experts is a good idea. As a Tucson-based business, you need to assess the nature of the compensation claims in your industry.
One may wonder how much product liability insurance do I need for my business. Well, the answer lay in the basics, such as the potential size of the claims. As a business, you need to research the magnitude of the compensation claim when something happens. This makes you ready in case of anything.
The other thing to focus on is the contract with the clients. It is where you ask yourself whether there is some level of public liability insurance to expect. With this, you can predict the right coverage to go for. Additionally, ask yourself whether there are additional expenses that a consumer may incur. This may include:
- Thinking around the repairs after selling a property.
- Thinking around maintenance costs after selling a property.
Product Liability Insurance Costs
The approximate cost for insurance for every $100 sales revenue is twenty-five cents. However, there are variances regarding the actual cost. This is because the nature of your industry has a massive impact on this. The nature of your product also influences your actual expenses. Being in a biotechnology field, for instance, may attract more costs.
In line with the costs, understanding the cost factors of product liability insurance is necessary. One of them is the aspect of claim history. If you have been in frequent compensation claim issues before, an insurer may be inclined to puts the costs at the highest level. Secondly is the coverage limits. It means, the more you cover, the more you will pay for the insurance.
As a business, your financial security is elemental. This is why looking for product liability insurance solutions is critical. Such business insurance covers you against any compensation claim against you. Different aspects influence the cost you will incur during the whole process. For instance, the revenue, claims history, and insurance coverage has a considerable impact.
Contact an Experienced Attorney
In Arizona, the Tucson Product Liability Lawyers explain the limits on the costing. Knowing the boundaries regarding the compensation claim is necessary. It keeps you safe from complainants who may inflate the costs to gain more from the liability.
Contact our experienced attorneys today.