Product Liability Insurance in New York

Product liability insurance is a unique policy designed to protect retail businesses or anyone who sells products or services from claims that a product they manufactured or sold caused property damage to someone else’s personal possessions or bodily injury. 

Businesses without this type of coverage could have to pay out of pocket for the costly liability claims related to defective products.

Businesses with a product liability insurance policy will find they typically have coverage for claims related to:

• Manufacturing Defects – These are defects that occur while making the product.
• Design Defects – These defects existed before the production of the goods. 
• Improper Warning – This occurs when the business owner does not provide sufficient warning, caution, or instruction on the proper use of a product.
• Strict Liability –  This is when a customer gets injured by a manufacturer’s product, even if there is no negligence on the business owner’s part. 

Keep in mind that product liability insurance does not cover product recall, which requires a separate policy.

Product liability insurance companies will encourage businesses selling products or services to customers or clients to invest in product liability insurance. Whether your enterprise is large or small, a problem that occurs during any point in production can result in defects and put your business at risk of a product liability claim. 

For example, a food and beverage company may produce edibles that result in food poisoning thanks to a contaminated product from a supplier. For this reason, it is essential to protect your enterprise with the right insurance policy.

 In addition, many industries can benefit from insurance for product liability, including:

• Manufacturers
• Retailers
• Wholesalers
• Beauty and cosmetology professionals
• Food services like restaurants, caterers, and bakeries
• Construction companies for post-completion work

Whenever your business offers goods or services for sale to the public or other industries, you should have product liability insurance. Because things can go wrong at any time, ensuring you’re covered is the best course of action. 

Since anyone can sue over damage caused by a product, even if they didn’t use or purchase the product themselves, making sure you’re covered is the best way to avoid nasty costs that come with these types of claims. 

Business product liability insurance protects businesses from financial fallout should a product they sell, or manufacture causes damage or injury to a third party. 

Consumers can suffer injury or damage from how a company manufactures a product, how the company designs or markets the product, or from misuse. 

Since the company is liable for making things right, product liability insurance will protect you should your business be sued. Product liability lawsuits are costly, which is why insurance professionals recommend product liability insurance, as this covers the legal fees and other relating costs, such as medical bills and compensatory damages.

While you can extend your general liability insurance policy to include product liability insurance, these two policies are not the same and cover different things. 

General liability insurance covers general claims, for instance, if a customer comes into your store, trips over a clothing rack and breaks an arm, or if a competitor sues you for copying their logo.

In contrast, product liability insurance covers damages or injuries that relate directly to your products or completed services.

Yes. If you run a small retail business, manufacture goods, or provide a service like a beauty salon or hairdresser, you should invest in product liability insurance. However, the amount of coverage you buy will depend on your business size and sales volume.

The best place to find liability insurance for products is by contacting qualified insurance brokers like Next Century Insurance. An insurance representative can then advise you on the type of coverage you need.

Under New York law, a manufacturer and all those directly related to the distribution of its products are liable for any damages or injuries caused by defective products it sells. 

As a result, it is recommended that businesses invest in product liability insurance. However, these policies are not required by law.

If your small business offers products or services like a bakery, candle maker, restauranteur, butcher, beautician, clothing or apparel store, or similar, investing in product liability insurance is worthwhile. Since lawsuits relating to products are costly, these policies are the best way to protect your company and livelihood.

NCI understands the needs and risks of businesses offering goods or services rendered and the costs of lawsuits pertaining to defective products. 

Our team of highly qualified insurers can help you invest in the right policies that offer the perfect coverage for your business, keeping you and your enterprise protected.

So, if you feel your business needs coverage, contact NCI today for a product liability insurance quote!