Will Your Product Be the One That Rocks the Market?!
Every day in this country, companies are hard at work planning, developing, testing, or getting ready to bring a new product to market. If your company is one of those that is planning on bringing the next great product to market, I believe you couldn’t have picked a more perfect time to launch your product.
Over the last few years, the volume of new products that have hit the market is incredible, and as far as we can tell, this trend will continue for a long time. Regardless of whether your company has been marketing products for years, or if your company is just starting the journey in all kind of diverse fields, whether it involves manufacturing, designing, or distribution in segments such as coffee or tea, cosmetic and beauty products, food products, diet/health/nutritional products, medical devices, child/baby products, craft beer or liquors, recreational products, e-cigarettes, or one of a thousand different and unique products that makes our lives better each day, the most important and prudent thing you can do to protect your company is to make sure that a NV Product Liability Insurance Policy is part of your overall insurance program.
The Importance Of Having A Product Liability Insurance Policy
Having this type of insurance coverage could be the difference between your company continuing doing business or being forced to close your doors should a lawsuit or claim be filed against your business. Most times when we are discussing Product Liability Insurance with a potential client, we hear two things, one, they just can’t understand why their product would even need insurance coverage, and, two, they feel if they have to acquire insurance for their product, they couldn’t ever imagine a scenario where their product could ever cause harm to someone, resulting in a lawsuit or claim.
Please remember, anything can happen and usually does! The last thing you want is to be hit with a claim or lawsuit and be without Product Liability Insurance Coverage. If your company has a product in development with future plans to become either a manufacturer, distributor, or even a retailer, purchasing a Product Liability Insurance Policy in Las Vegas is extremely important to the success of your company.
Regardless of where your company fits in the product cycle, when a customer is absolutely convinced that the product they purchased caused them hard in any way possible, it is almost a given that they will file a lawsuit or claim against any or all companies in the product chain, and that kind of legal action could well result in your company suffering huge monetary damages, all the while taking up a vast amount of your valuable time that would normally be devoted to making your company successful. This legal concept is most commonly known as a stream of commerce, and it governs product liability in almost all fifty states. What this legal concept means is that any company that has any involvement in placing a product into the commercial stream could be held liable for a defect, which could expose your company to the risk of paying monetary damages for the product defect.
If the customer were to be victorious in their claim, there is the possibility that they could also be awarded any medical expenses, compensatory, and punitive damages, and even their legal fees could be included.
In Most Cases, These Types Of Claims Focus On These Three Main Issues:
- Production/Manufacturing Flaws: In the majority of these cases, this type of claim involves a product that is defective as a result of the company’s production process, which, in turn, makes the product unsafe.
- Design Defects: When talking about this particular type of claim, in quite a few cases, it refers to how the product was first designed. One example of this type of claim would be an auto or battery manufacturer. In the process of your company’s product design, we strongly advise to be as cautious as humanly possible and have a solid plan to review all product designs.
- Defective Warnings/Instruction: I am sure most of you have read the warnings that have been written on the side of the numerous products you have purchased and wondered, why wouldn’t everyone already know this, but it needs to be spelled out so a consumer doesn’t hurt themselves? This is just common sense that you would think most people already have. The last few years have seen an increase in product lawsuits being filed from customers who feel they have been wronged in some way from using these products, so companies are now putting very detailed warnings on their packaging. We suggest that your company may want to consult an attorney to consider what language you use for your product to protect yourself from a product liability lawsuit. We understand that as a responsible company, you will take every precaution possible, but incidents can and will happen which could, in turn, harm a customer, making your business liable, hence the need for Product Liability Insurance Coverage. By acquiring a Product Liability Insurance Policy in Nevada, the insurance carrier has a duty to defend your business for a covered peril, paying for the costs to investigate the claim that was filed and brought against your company and to settle any judgements or settlements that may be levied against your company up to your policy limits.
With these types of insurance policies, the rates are not standard.
The reason for this is that there are so many variables when it comes to these types of risks. Is your business going to manufacture, market, distribute, or any combination of these, and what is the degree of risk of your product when it comes to the buying public? The smaller the product risk, the premium will be at the lower end, and, of course, if the product is in a high-risk category, the premium will be at the high end.
PJO Insurance Brokerage has access to various insurance carriers, so whether your company is in the business of distributing, manufacturing, developing, or just selling a product, we can assist your company in finding a carrier to fit your company’s insurance needs. We look forward to working with your company in the near future.
PJO Insurance Brokerage – Patrick O’ Neill
9850 S Maryland Parkway Suite A-5-262
Las Vegas, Nevada 89183