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Businesses Need Product Liability Insurance Before A Lawsuit Strikes
By: Gemma-Leigh Garner

Product liability insurance is not just for manufacturers. At times when a consumer is injured from a product, they want nothing to do with suing the manufacturer and go straight after the store that sold them the product instead. In the United States, the manufacturer, the distributor, and the store selling the products are all in line for a lawsuit from an unhappy consumer if they have suffered damages.

Stores in the United States that are carrying the popular inexpensive import items from China need to be very aware of the potential lawsuit issues. China has a recent history of supplying the United States with products that do not meet health and safety standards. If a consumer, bystander, or property is hurt because of the nature of an inferior product, it is the business located in the United States that will be named alone on the lawsuit.

Many retailers feel that it is completely unfair that they can be sued for selling a flawed product that has been sealed into packaging by a manufacturer. Stores argue that they have no way of knowing when a previously sealed product might have a flaw. There is a group lobbying for changes in the United States product liability laws, but until this happens, every business needs product liability insurance before an emergency happens.

Product liability insurance is best bought through a highly qualified insurance agent that is familiar with your unique product situation and needs. Insurance costs are calculated through a formula that takes into account your potential lawsuit probability, the quantity of good made or distributed, and your region of the country. Prices for product liability insurance policies vary for each business purchasing them.

Stores that carry used items, and those doing refurbishing of items are also in need of product liability insurance. As an example, if a toy has been recalled through proper sources in the United States, and it is later sold through a used store and given to a child that gets hurt, somebody will be asked to pay for those damages. In a situation like this, the only business available to list on a lawsuit is the one that sold the toy.

Each year there are thousands of American businesses sued with product liability claims. Small businesses are often the hardest hit on damage awards since many have not taken steps to separate their personal lives from their business affairs so that even small judgments can have very negative consequences with personal belongings involved. Today, all businesses that handle consumer products in any manner are wise to buy a product liability insurance policy before trouble strikes.

Article Source: http://www.phelpsconsultanting.com/articles

Gemma-Leigh Garner is a freelance copywriter that writes on many different insurance topics such as product liability insurance and helping manufacturers & retailers deal with product liability protection plus other related topics.

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