Product Liability Insurance in Vermont
What is Product Liability Insurance?
Businesses that make or sell products are occasionally held responsible for accidents caused by their products, and major accidents can result in expensive liability claims and lawsuits. Product liability insurance helps protect Vermont businesses that sell products from a range of covered lawsuits that may follow a product-caused accident.
Product liability insurance policies are specialized commercial liability policies that have been uniquely developed to meet the risk mitigation needs of companies that sell products. As a liability protection, policies normally cover legal fees, settlements and judgments associated with covered claims.
What Vermont Businesses Need a Product Liability Policy?
The protections that product liability policies offer may be helpful to a range of Vermont businesses. All of the following might want this type of policy:
- Manufacturers
- Wholesalers
- Distributors
- Retailers
- Deliverers
Depending on the specifics of a particular accident, any of the companies that made, transported or sold the product in question might be sued.
Businesses that unsure whether their risk exposure justifies purchasing a product liability policy should speak with an insurance agent who specializes in this coverage. Such an agent will be able to make an informed recommendation based on a business’ particular situation.
Should Food Service Companies Have a Product Liability Policy?
While products are often thought of as the items that wholesalers and stores sell, product liability policies may cover a wide range of different products.
One example of additional products that these policies might cover are the foods and beverages that restaurants serve. These are essentially products sold by restaurants, even though they tend to be quickly consumed products. In many cases, restaurants and other food service companies can benefit from the protections that a product liability policy offers.
By purchasing a policy that covers incidents of food poisoning, restaurants may be able to insure against the risk of spreading a food borne illness to many patrons. Should lots of patrons contract a serious illness, they could try to sue the restaurant. That suit, however, might fall within a product liability policy’s protections.
What Sorts of Claims May Be Covered by Product Liability Policies?
The exact claims that any one product liability policy will cover are determined by that policy’s own terms, conditions and exclusions, and there are variances among what different policies include in their protections. Depending on a policy’s terms, it might offer coverage for accidents caused by some of the following issues:
- Design flaws
- Manufacturing defects
- Production errors
- Warning inadequacies
- Instruction omissions
Do Product Liability Policies Cover Product Inventory Against Damage?
Product liability policies are generally liability-specific and therefore, normally don’t insure against physical perils that can cause damage. For insurance against damage from wind, fire, vandalism, theft and similar risks, businesses usually need to purchase a separate type of commercial insurance.
Agents who are familiar with product liability policies can often also help with insuring against these other risks, though. In many cases, the different policies that are needed can even be combined within a package policy.
Do General Liability Policies Provide Product Liability Coverage?
While some general liability policies offer basic product liability protection, not all do. Additionally, many of those that do offer this protection include just a minimal amount of it. Thus, businesses that make or sell products frequently are better protected by supplementing their general liability policy with a separate product liability one.
How Can Businesses in Vermont Get Product Liability Insurance?
For help finding product liability insurance that will give your business robust protection, contact the independent insurance agents at T.S. Peck Insurance. Our agents have the freedom and expertise necessary to help you find the right policy for your Vermont business regardless of what company is offering it.
