If your BC-based business produces, distributes, or sells physical products, product liability insurance is essential. It safeguards your company from financial and reputational risks associated with defective or harmful products.
What Is Product Liability Insurance?
This type of insurance protects your business against legal claims arising from injuries or property damage caused by products you manufacture, sell, or distribute. Even if your company doesn’t produce the item directly, you could still be held liable.
Who Needs Product Liability Coverage?
- Manufacturers
- Retailers
- Distributors
- E-commerce sellers
- Businesses importing products
Common Product Liability Scenarios in BC
- A defective electronic device causing a fire in a customer’s home.
- Food products causing illness or allergic reactions.
- Toys or childcare products posing safety risks to children.
What Does Product Liability Insurance Cover?
Legal Defence Costs
Product liability insurance covers legal expenses associated with defending your business against claims alleging your products caused harm or damage. These costs can quickly become overwhelming, especially if the claims require lengthy court proceedings or expert testimonies, making this coverage a crucial protection for your business.
Settlement and Judgment Expenses
Should your business be found responsible for injuries or damages caused by your products, this insurance will cover settlement amounts reached through negotiations or judgments awarded by the courts. Such financial obligations can be substantial, and having product liability insurance can prevent these costs from severely impacting your business operations and financial stability.
Medical Costs for Injured Parties
If your products cause physical harm or injuries, product liability insurance will cover medical expenses incurred by the affected parties. This ensures prompt medical care for injuries, helps mitigate further damages, and demonstrates your company’s commitment to customer safety and welfare.
Why Product Liability Insurance Matters for BC Businesses
BC has strict consumer protection laws. Liability claims can be financially devastating, especially for small or medium-sized businesses without proper coverage. Adequate product liability insurance demonstrates responsibility and helps maintain consumer confidence.
How to Secure the Right Product Liability Coverage
- Evaluate the nature and risk profile of your products.
- Ensure coverage limits align with potential liabilities.
- Consult with a Park Insurance broker to customize your coverage based on your business needs.
Don’t risk your business’s financial stability—contact a Park Insurance broker for expert guidance on product liability coverage today.
