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What is Product Liability Insurance?

As the owner of a business, you are liable for any products you manufacture or sell—and if somebody is hurt as a result of using the product, you may be at fault for the incident.

When you ask for coverage from our agency, we will determine the likelihood of a lawsuit being brought against you as a result of one of your products being used. Our experts can identify the risks associated with your products or services and appropriately scale a policy to cover those risks. We can also offer advice on how to make your products less prone to risk. This may involve modifying your product, packaging it differently, or changing any instructions and warnings included with the product. When done well, these precautions can help reduce the company's liability and stop customers from using the product in an unsafe way.

Do I need Product Liability Insurance?

If your company manufactures or sells any kind of product, it is strongly recommended that you have some form of liability coverage. Even products that are widely regarded as 'safe' can malfunction in a way that causes harm to the user, and defending against a lawsuit is usually expensive enough that many companies (and claimants) prefer to simply settle out of court. Product liability insurance can reimburse you for expenses (including defense costs and settlements) that occurred during this process.

Product liability cases that go to court are among the most expensive forms of personal injury cases, and as of 2013 these cases had an average payout of more than $6 million. All companies that obtain this type of coverage are encouraged to have a policy limit higher than the median payout—anything less makes it likely that your company will suffer significant losses if a jury decides against you.

Don't forget to talk to your agent on a regular basis as your business continues to grow. Larger businesses often face larger risks than smaller ones (including, among other things, increased exposure as a result of having more customers who could potentially file a lawsuit). A plan that suffices for a small company may not be enough to protect a large one.

What does Product Liability Insurance Cover?

Product liability insurance mainly covers the legal obligations of a company. This may include payments like:

  • Court fees
  • Legal defense costs
  • Personal injury awards
  • Out-of-court settlements
  • Miscellaneous fees that may occur during any of the above

If you feel any of these forms of coverage are missing from your policy, or if you are starting a business and need product liability coverage, speak to a Maryann Wain Insurance agent or request a quote today.

 

1. Ross, Kenneth. "The Role of Product Instructions in Product Liability Prevention." In Compliance. April 30, 2015. Accessed April 18, 2016. http://incompliancemag.com/article/the-role-of-product-instructions-in-product-liability-prevention/.

2. "Settle Your Personal Injury Claim." AllLaw.com. Accessed April 18, 2016. http://www.alllaw.com/resources/personal-injury/settle-your-personal-injury-claim.

3. "Product Liability." III. Accessed April 18, 2016. http://www.iii.org/fact-statistic/product-liability.

Our Location

Maryann Wain Insurance

1458 S Robertson Blvd
Los Angeles, CA 90035
Main office: 310-893-1817

Our Providers

Best service ever!! I've been working with them for a few years now- they always get me the best rate! Awesome crew, very helpful- always there to help when I call - prompt and always on time. Could not ask for a better insurance crew. I love this guys! Sophia is the best!! Thank you!!
Roy G.
Sad to see people rate this company lower than a 5. I called Hector Gomez in a panic to get out of my current insurance policy due to a negligent agency. My previous agency quoted me a low price and charged my account $80 more than what she quoted! Hector waved his magic insurance wand and made everything go away, gave me a better policy, and peace of mind. Nationwide is way more up to date with their billing electronically and I'm always aware of what's going on. Any question/s I have, Hector answered them, even late at night when my mind won't shut off and questions kept arising! I highly recommend this company, they're fast, efficient and straight to the point. Thank you guys!
Laura W.
This agency is great!! They are professional, knowledgeable and are there when I need them. The staff are really nice people who are looking to help. I have had bad experiences with the norm insurance agencies but Maryann and her crew seem to make things easier for me. I would recommend this insurance agency to my friends and family!
Natasha R.
Legendary agency. In 2013 my band bought an old transit bus from the city and retrofit it into a tour bus after the advent of a mega-underground national tour. Truth be told I don't know how I ended up on the phone with Edward amidst a sea of dead end insurance calls but within minutes our band finally had our first agent. An insurance agent, yet remarkably more valuable than a booking agent. Safe and insured we hit the road on a most epic road trip. The tale of the band on the moon can probably be read somewhere else on the internet but not here. Fast forward til June 2015 when I am resurrecting the bus for another cross country bound; I'm moments from hitting the road after days of mechanical work to get the engine to fire from being left for dead in Indiana through the winter. I realize the insurance has lapsed. I call and talk to Edward and Sophia and we're insured before we could get a half mile down the road. Since then through storage woes and relocating the bus around southern california Sophia has been diligently helpful and thoughtful checking on my policy and emailing me reminders. Oh and I should not forget to mention her witty charm and overall superb awesomeness. Truly the best service I've ever had with any automobile and they've done it with a moon bus. Thank you!
Greg H.