Product Liability Insurance

Product Liability Insurance

Protect Your Business and Build Consumer Trust with Product Liability Insurance

In today’s competitive market, ensuring the safety and reliability of your products is paramount. Product Liability Insurance is designed to protect your business from the financial fallout of claims related to defective or harmful products. By investing in this essential coverage, you can safeguard your business, enhance your reputation, and foster consumer confidence.

Why Product Liability Insurance is a Must-Have for Your Business

Comprehensive Protection: Shield your business from costly claims arising from injuries or property damage caused by your products.
Financial Security: Avoid the financial strain of legal fees, medical expenses, and compensation payouts, allowing you to focus on growth and innovation.
Enhanced Credibility: Demonstrate your commitment to quality and consumer safety, building trust and loyalty among your customers.
Peace of Mind: Operate with confidence, knowing that you are protected against unforeseen product-related incidents.

Key Features of Our Product Liability Insurance

Bodily Injury Coverage: Protects against claims for injuries caused by your products, covering medical expenses, rehabilitation costs, and legal fees.
Property Damage Coverage: Covers damages to property caused by your products, managing repair or replacement costs and protecting your business’s financial health.
Legal Defense Costs: Provides coverage for legal defense fees, ensuring you have the resources to defend your business against claims.

Who Needs Product Liability Insurance?

Product Liability Insurance is essential for manufacturers, wholesalers, distributors, and retailers. Whether you produce goods, import products, or sell them directly to consumers, this insurance ensures you are protected against potential risks.

Benefits of Choosing Our Product Liability Insurance

Tailored Coverage: Customized insurance plans to meet the specific needs of your business, ensuring comprehensive protection.
Expert Support: Access to our team of experienced professionals who can guide you through the claims process and provide ongoing support.
Competitive Rates: Affordable premiums without compromising on coverage quality, providing excellent value for your investment.
Proactive Risk Management: Assistance with identifying potential product risks and implementing measures to minimize them, helping you maintain high safety standards.

Case Study: Protecting an Electronics Manufacturer

Background:

XYZ Electronics, an innovative electronics manufacturer, faced a major challenge when one of their new smart devices was found to have a defect that caused overheating. Despite thorough testing, a small batch of the devices had an undetected flaw that posed a fire hazard.

The Incident:

Several customers reported incidents of the devices overheating and causing minor fires. This led to a product recall and significant media attention. Affected customers filed claims for property damage and personal injury, seeking compensation for their losses.

Impact on the Distributor:

During the recall, it was discovered that one of XYZ Electronics’ distributors had failed to store the devices according to the specified guidelines, which exacerbated the overheating issue. As a result, the distributor faced numerous claims from retailers and consumers for damages and injuries caused by the defective products.

Subrogation and Liability:

XYZ Electronics’ Product Liability Insurance policy covered the costs of the recall, property damage claims, and legal fees. However, due to the distributor’s mishandling of the products, XYZ Electronics’ insurer pursued subrogation against the distributor. Subrogation is a process where the insurer seeks to recover the costs of the claims paid out by holding the responsible party (in this case, the distributor) accountable.

The Outcome:

Through subrogation, the insurer was able to draw the liability back to the distributor, ensuring that XYZ Electronics was not solely financially responsible for the damages caused by the mishandling. XYZ Electronics also took the opportunity to review and strengthen their distribution agreements and protocols, ensuring better compliance with safety and storage guidelines in the future. The company’s proactive measures, supported by their Product Liability Insurance, helped restore consumer trust and maintain their market position.

Get Started Today

Don’t leave your business vulnerable to product-related claims. Contact us today to learn more about our Product Liability Insurance and how it can benefit your business. Secure your operations, build consumer trust, and focus on delivering quality products with the confidence that you are protected.

Taking Care Of All Your Risk Management Needs.

Started in the 1960s as an insurance agency, Tan Insurance Brokers is led by a team of extremely experienced and qualified risk managers and advisors and has partnered numerous local and global enterprises for over 4 decades.

At TIB, you always come first. We’ve built our reputation on decades of putting customers first and our experts are always on hand to deliver personalised service and support.