This product liability insurance is very important for a company that manufactures products. Namely, this insurance will protect your business if a customer who buys your product suffers damage due to a defect in your product. It covers liability for compensation costs, legal fees and any other costs associated with the case.
If such accidents happen, it is very important to get insurance in time. So that no compensation claim can be filed against you. A claim for a defective product can be made against the manufacturer at any time within three years of using the product. And in some cases longer, be aware of this item.
What is product liability? Check HERE.
Which companies need product liability insurance?
In the following lines, we will list a few of them:
- Any company that repairs or repurposes a product,
- company that sells a product with its company or brand name,
- then company that imports products from outside the European Union for sale,
- and company that manufactures a product.
Although in most cases the manufacturer bears the ultimate responsibility if something bad happens. The retailer who sells your products must provide proof that the products were defective when they were delivered to him. Or that they were broken at his place.
Not every business requires product liability insurance, it depends on what your company offers.
What does product liability insurance cover?
Product liability insurance covers a case of damages brought against the manufacturer. Such proceedings are brought for loss, damage or injury. There is no upper limit to the amount of the claim and it is calculated in relation to the severity of the individual case. And the scale of the damage.
If a defective product is widely distributed and has a large impact, compensation costs can easily run into the millions.
How much product liability is required?
Some products may be more prone to risk than others. So make sure that the insurance policy you purchase matches your job description and production.
What does product liability insurance not cover?
Product liability insurance covers claims for physical damage caused by the product. It is also not responsible for covering problems caused by software, applications, IT and technical products.
Product liability also does not cover:
- Employee injuries
- Product recall costs
- Accidents involving customers such as slip and fall injuries etc.
Contact us!
Nedim Ramic and Bajric & Ramic team of attorneys are here for you. And you should not hesitate to call us today for a free consultation. The time is of the esence. If you find these information above useful, but you have more questions regarding the subject. Or you just need legal help straight forward, give us a call. On 314 352 6800 and get free consultations today!
