Product Liability Insurance
In Orange County, CA, newly created and existing companies are producing a wide range of products whether they are distributing them or selling them direct to the public. Some of the products sold or distributed include clothing, toys, tools, hair products, food products, dietary products, health products, building materials, electronic devices to name a few among the hundreds of products that are produced each year.
If your company manufactures or distributes a product, then having a Product Liability Insurance Policy is an absolute necessity in protecting your company in the event a lawsuit arises out of the use of your products. This can be loss to personal property, business property, injury, or death. When a company is manufacturing or distributing their new product, they need to understand that their product will always have a potential risk to someone, and having a Product Liability Insurance Policy in place beforehand is the best course of action for the company.
In today’s marketplace, simply selling or distributing a product has become cause for concern, and, moreover, can have a product liability exposure. With this concern, most wholesale and retail operations and venues are requiring that manufacturers, distributors, or wholesalers have products liability insurance on the items they develop before they will even allow the product to be brought into their stores and placed on their shelves.
Additionally, as a retailer of these products, you may be held responsible if there is an injury that results out of the use of a product you sell. Too often, retailers feel that they have no liability; this may not be the case depending on the state’s laws regarding product liability. The retailer may be held liable for damages, and even if they are not held liable, they could incur thousands of dollars in legal fees which their CA commercial general liability insurance may not cover.
When we sit down with clients and go over this type of coverage, we advise clients that these types of policies carry no set standard premiums due to the fact that there are too many variables, such as the type of product you market, manufacture, or distribute. Then, there are the products themselves. Some products carry a low risk of harm to consumers, which, in turn, usually results in a lower premium, and other products that carry a much higher risk to the consumer will carry a much higher premium. PJO Insurance Brokerage in California has numerous markets and the experience to put together an insurance program tailored towards your specific product. Please contact us today via email or at 949-354-0789.