Product liability insurance protects inventors, manufactures and sellers from flaws and defects in any publicly available product. Unprotected, your business can be responsible for:
- Medical Costs
- Compensation for Damages
- Economic Damange
- Punitive Damages
- Attorneys' Fees
This damage and the cost, depending on the number of people affected, it can put businesses into bankruptcy. With simple product liability insurance, a business can protect themselves from most or all of these costs. To know more about the amazon general liability insurance, you can browse the web.
A product liability policy includes:
- manufacturing defect
- warning enough
- design flaw
More recently, some Chinese manufacturing children's toys produced plastic in the presence of lead. Some parties will be responsible for defects in the product. Manufacturing can be required to produce the product in the presence of hazardous chemicals. Retail outlet or the seller may be responsible for selling products that are not safe for the end user.
Warning not quite cover the undesirable side effects of the product are not properly labeled / explained. Examples of this can include cereals produced in a factory that also processes peanuts. Cereals may physically harm people allergic to nuts. Cereals can be produced from sources that do not contain traces of peanuts, but production can add nuts to the cereal residues.
A design flaw could be something as simple as dropping a handle hot coffee cup for airbags fail to deploy in an accident. In both situations, the company responsible for their products fails to perform as advertised.