Do all businesses need to be covered by Product Liability Insurance?
Product Liability Insurance protects your business from financial losses that arise when injury or damage claims are made against your product or services. Depending your insurance provider, this type of business insurance may cover the costs of damages, legal fees, etc.
If your business operates in multiple countries, or if you’re importing products – you need Product Liability Insurance. In Australia, the law states that if you’re importing directly from a manufacturer, you are considered the manufacturer under Australian law. That means you are responsible for the product in professional negligence and liability exposures. Making sure your insurance is structured correctly is also essential if you’re rebranding your product.
It’s important to keep your Products Liability Policy in check because business operations are unpredictable. Business activities such as re-labeling, drop-shipping, and mixing can result to gaps in cover so you have to make sure your services and products are getting the right coverage from litigation.
No two insurance policies are alike. Every business needs specific coverage. It’s best to work with an expert business interruption insurance broker like theProduct who will do a comprehensive review of your operations and will design an insurance program just for your business.