Product liability insurance cost
Posted February 14th, 2021 by Anthony Carbone.
Categories: Personal Injury.
Suppose you are an owner of a business in New Jersey. In that case, it will be critical to obtaining product liability insurance to cover any damages that may arise due to the products you sell to the public. As the business owner, you are liable for the products your business sells, and if a person is injured by using the product, you may be held accountable for the incident. Read ahead to find out why it is vital you obtain product liability insurance coverage for your business in New Jersey.
Please contact our Jersey City personal injury attorney to get all the advice you need to understand the process of obtaining product liability insurance for your business.
What is product liability insurance, and why is it important
Product liability insurance is a type of insurance coverage that protects sellers or manufacturers against any damages that may arise due to defects or flaws in a product. Even though you may have the best of intentions when producing the commodity, accidents can occur using the product.
You may face legal lawsuits against you and your business if something goes, and this where the product liability insurance comes in handy. The insurance coverage will be essential in ensuring that you can pay any settlement claims against your business. You could face legal action as a seller of the product just as much as the manufacturer.
Therefore, it is important to obtain product liability insurance, and our personal injury lawyer Anthony Carbone can help you work to protect your business.
What determines the cost of the insurance?
The product liability insurance cost is determined by the type of product offered by the business. If, for instance, your business handles potentially hazardous material and products, then the cost could be higher since the chances of injury are higher compared to other safer products.
What is covered by product liability insurance?
Product liability insurance covers the legal requirements of a business or a company. There are various costs associated with product liability lawsuits, and the insurance coverage will include payments like:
- The associated court fees
- Personal injury awards
- Legal defense costs
- Out of court settlements
- Miscellaneous costs that may arise due to any of the above
Product liability insurance coverage can significantly reduce the scale and scope of a large award. If, for instance, you do not have insurance coverage, the court fees alone can be overwhelming. It is, therefore, definitely crucial to have insurance coverage for your business.
Types of product liability claims that can be covered
Harm or injury due to a defective product can occur in three instances. This leads to the main types of claims arising from product liability in New Jersey, and they are:
- Lack of warning signs or instructions
- Design defect claim
- Manufacturing or production flaw
These instances can lead to serious injury to the consumer, and your product liability insurance should be sufficient to cover any costs arising from any of these scenarios.
Contact a New Jersey Personal Injury Attorney
Anthony Carbone is an experienced and leading personal injury attorney located in New Jersey. If you have questions about your product liability insurance, contact our offices today to get a free consultation.