Checklist for choosing the right product liability insurance coverage
Despite the hard work that businesses put in to ensure they manufacture high-quality goods, there is still the chance that products could fail to work properly. There is always the potential for defects that can result in bodily injury or property damage.
Product liability insurance offers protection to distributors, manufacturers, retailers, and wholesalers, against any legal liability arising out third-party injury or damage to property which is caused by the consumption or use of the product sold or supplied.
Not all product liability policies offer the same protections, and there are plenty of factors to consider besides the cost when choosing a policy for your business. Here are a few key considerations to make finding and comparing a product liability policy a little easier.
It’s important to choose a policy that adequately supports your business activities. Just as there are many insurers there are also many variations between policies, so it’s imperative to read the fine print and check the policy wordings, endorsements and exclusions in detail.
Choosing the right coverage level depends on the nature of your business and operations as some businesses carry a much higher risk than others. Therefore, it’s important to carefully consider the potential risks your business presents. It may be tempting to purchase a lower level of cover to save on costs, but it may not provide you with sufficient coverage, leaving you exposed at the time of a claim.
Of course, all business owners look for ways to save money, however the cheapest product liability cover isn’t always the best option. The most effective way to get the best coverage at an affordable price is to get multiple quotes where you can compare the premiums and the policy features.
Even the most vigilant businesses that operate to the best of their ability still are vulnerable to losses. However, by assessing your business, conducting risk assessment, and reducing your risk through sound business practices you could potentially reduce your insurance premium over time.
There is a lot to consider when purchasing a product liability insurance policy, and the above tips are a good starting point to getting the right policy. At Unison, we have a dedicated team of experts who can offer you a policy tailored to your needs and guide you in every step of the process, end-to-end from initial risk assessment to claims servicing and management.