What Is Product Liability Insurance?

Posted September 17th, 2020 by .

Categories: Personal Injury.

When a consumer purchases an item from a business owner, they do so with the expectation that it is safe. Alternatively, they expect the seller to provide them with sufficient warning if the item is dangerous. All this is covered under a practice area known as product liability. Do you have a case you believe is related to product liability? Contact a Jersey City Personal Injury Attorney today for legal help.

According to product liability law, manufacturers and distributors are responsible for any damages a consumer suffers from using their product. They can be held liable for both property damage and bodily injury. This is where product liability insurance comes in.

So, what is product liability insurance? Here is a look at everything you should know about this cover.

Types of Product Liability Cases

Harm from a defective product can occur due to three different situations. This gives rise to the main types of product liability cases seen in New Jersey courts. They are:

  • Design Defect Claim – This is where the plaintiff seeks to prove that the product is unsafe due to a defect in its design. Such a case can be brought against the product’s designer or manufacturer.
  • Production or Manufacturing Flaw – Here, the plaintiff tries to show that the manufacturer’s actions or negligence created a defect in the product during the production process.
  • Failure to Provide Warnings – Companies are expected to accompany a product with enough warnings or instructions if using it incorrectly could cause potential injuries. Failure to provide this information could make the company liable for a buyer’s damages.

Who Needs Product Liability Insurance?

In most cases, product liability cases are brought against the product’s manufacturer. The manufacturer can be accused of designing or producing a defective product. They can also be held responsible for failing to warn the consumer of possible dangers associated with the product.

Alternatively, liability can also fall on the seller of the product. This is common in situations where the seller directly imported the product from outside the country or altered, whited, or private-labeled it. Such cases can affect distributors, retailers, wholesalers, and retailers.

Overall, anyone involved in a product’s journey from the designing stage to when it reaches the consumer can be sued for the consumer’s injuries. This means that everyone in this chain needs protection from a possible product liability lawsuit.

New Jersey Product Liability Insurance

When a consumer files a product liability case against you, you could be forced to cover their medical bills, lost wages, and pain and suffering. Having product liability insurance protects you from having to meet these costs out of pocket.

Ultimately, it could prevent you from making unprecedented losses and losing your business.

Talk to a Jersey City Personal Injury Attorney Today

‘What is product liability insurance’ is a common question among business owners in New Jersey. This is because running a business often exposes them to a wide range of risks. Some of these risks, like product liability, could end in litigation and cost them millions of dollars.

A product liability case could have severe repercussions on your business. The damage could be even worse if you do not have product liability insurance.

If you have questions concerning this matter, our Jersey City Personal Injury Attorney is eager to help. Contact the Law Offices of Anthony Carbone us today to schedule an appointment.

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