Who Needs Product Liability Insurance and What Does the Coverage Protect You From?

“Every entrepreneur wants to secure the Business”. Yes! It’s often important to protect a business against claims of damage or injury if you work with clients or customers or in public places. So, as a matter of fact, it is quite needed to introduce the term “Product Liability Insurance.”

What Exactly is Product Liability Insurance?

Product Liability insurance is typically enclosed as a part of a public liability insurance policy. The reason behind its design is to serve the professionals who provide merchandise to their customers or to members of the general public.

What does product liability insurance cover?

Product Liability insurance protects against claims of private injury or property damage caused by merchandise oversubscribed or provided through your business.

It is designed to assist defend your business by guaranteeing that if this happens, you don’t need to pay any legal or court prices.

Product insurance defends the manufacturer within the episode that they realize their company being sued. By means of that of this kind of canopy, the insurance organization takes care of some cash that’s an advantage to someone.

As a result of getting any product responsibility insurance, the producer doesn’t need to be anxious concerning any thrashing which could be connected within the interior of a lawsuit.

Here are the list of common problems a client encounter which ends up in product liability claim includes the products that cause

  • Bodily injury to the client
  • Harm to the property
  • Sickness through food or beverages

So, it is good to come out of the misconception that insurance is the question to be answered by big businesses and not small. If one is responsible to protect their Business from the risk of product liability claims, it is the time to visit a genuine company that offers Product Liability Insurance.

What Is Covered by a Product Liability Insurance Policy?

Product Liability is not an option but it is mandatory these days. In this fast forwarded life, situations are very fragile. So, it is recommended to secure your business with product liability insurance policy than getting worried after a huge loss.

An organization progress not only depends on profits but also with the best insurance policies which help and manage the risks in the time of need. The product liability insurance covers any legal liabilities to third parties arising out of harm or injury due to products sold by a business.

Many organizations are providing the product liability insurance policy for manufacturers, installers, distributors, importers, product sellers in various fields listed below:

  • Medical Equipment and pharmaceutical products
  • Sports and recreational equipment
  • Motorcycle manufacturers
  • Nutraceuticals and Dietary Supplements
  • Beauty and home based business
  • E-Cig manufacturers and distributors
  • Health and fitness
  • Gun and firearms industry
  • And much more

Product liability insurance is designed to help protect your business by ensuring that if any loss happens, you don’t have to pay any unnecessary legal or court costs. So, by insuring your products with liability insurance policy, you can be confident that you are protected against a wide range of scenarios such as:

  • An injury caused by the equipment that you supply
  • Damage caused due to the products that you supply
  • Illness caused by food, medicines or beverages that you supply
  • Risks in work area for the employee while making your products
  • Property damage etc.

So, it is the right time to enroll your business under the product liability insurance policy without a second thought. Sadler & Company, Inc. is an independent insurance agency that specializes in providing product liability insurance to start-ups and small to medium-sized industries.

Safeguard your business with product liability insurance and lead a happy, tension free life.

Who Needs Product Liability Insurance Coverage?

Many business owners are at risk today because their businesses are not under
product liability insurance coverage.

Out of 100%, only 50% people are showing interest in insuring their business and securing it. But, 50% are not giving prominence to insure their business and after getting an unexpected situation they are wasting a lot of time and money paying lawsuits or running around judiciaries to face the situation.

Nowadays there is an increasing number of cases who are claiming product liability
insurance and manufacturers, distributors, sellers are at risk who do not have
product liability Insurance coverage for their business or products and goods.

According to current statistics in America, products
liability claims are raised from 34% in 2014 to 75% in 2018.

The costs of settling a claim are becoming havoc for the business organization. To avoid this mishap, Product Liability Insurance Coverage is a must for any organization that is in the field of goods and exchange trade.

Below is the detail list of organizations in various fields that needs product liability insurance coverage:

  • Product manufactures
  • Product traders by giving their business or brand names
  • Product Importers
  • Product distributors
  • Product sellers
  • Product installers

If you fall in any one of the above categories, we highly recommend you to secure
business through product liability insurance.

Product liability insurance secures your business when the products sold by you cause damage to property or injury to the person due to faulty products, it covers liability for legal fees, compensatory costs and any other costs associated with the case. So, when the unthinkable situation happened to your consumer, you can safeguard your firm from the calamity and also help the consumer, satisfy or meet their need so that you can reassure him or her and regain the trust on your firm.

Why Product Liability Insurance Protection Is Important

If you are a serious business owner who cares about your business, it is good to have an
appropriate knowledge concerning Product Liability Insurance Protection.

It is true that we are living in a world where we need to face serious hardship just because of
simple negligence. In addition to this, there exists a variety of options to file a case, no matter
what the level of damage is.

To discuss in simple, business owners have to hold the blame when any of their products are considered bad by any potential client. If this is the case, the client usually takes the business to the court to get a compensation for using or buying a bad product. Here comes Product Liability Insurance Protection into the picture to protect businesses against potential liability and losses due to claims that might be brought by consumers or even third parties who have suffered directly or indirectly because of malfunction of the product.

If the company that is facing the question has a product liability insurance coverage, the insurance company shall handle the case and shoulder the costs that will be incurred concerning the customer claims.

If the business doesn’t have product liability insurance, they need to lose funds to the
customer claims.

On the other hand, there is every chance of losing potential customers in the future. This hits the business from both sides.

Here it is important to make a point that, the coverage through product liability insurance
doesn’t include all the losses the owner of the business might have suffered because of
owning a malfunctioned products that were supplied to the public. This type of coverage comes into to play only when a claim has been taken to the court.

Also, the companies that involve in supplies only even are not exempted from this. This is
because it is only the supplying firm that knows the firms from which the products have been
brought from. In fact, a corporation is going to be prone to face claims if their business name
is on the merchandise, if they modified, repaired or renovated the merchandise if they foreign the products and if the producing company is out of business.

Having a place of these into thought,  it is important that a business has product liability insurance because it prevents them from losing money in many ways.

How Can a Product Liability Lawsuit Affect Your Business?

If you started a new business or budding entrepreneur and fetching for the
information about Product Liability, terms associated with Product Liability
Lawsuit, you will find all you need in this article.

First, let us learn what is product liability and then, we can understand what situations may lead a consumer to file a lawsuit against your business and its effects on your

Product liability is like a roof protecting the manufacturer, distributor, seller,
and installer while or after trading products.

When the consumer is happy with the products or the service provided then the concerned business will propel.If the consumer or end user receives a faulty product or injured or got sick by using the product then, they will file a lawsuit against the provider.

In recent times, we all read a true incident in the paper that happened for a woman who
used Johnson & Johnson baby powder resulted in a serious health hazard. She filed a lawsuit on Johnson & Johnson Company for not providing safety instructions which resulted in the damage of her health. The woman won the case and the company paid a huge amount for her.

Once it was an esteemed company but after this incident, gradually sales got decreased and people started to purchase another company baby powder.

It is clear that word of mouth is more powerful than a sword. If a lawsuit is filed against your business through word of mouth it spreads rapidly and you may lose your loyal consumers which may show a drastic impact on your business. With a lot of hard work, everyone will take his or her business to a particular and good position but it is very hard to withstand in that position. In simple words, we can say that it may take years to build goodwill but for the downfall
one lawsuit is enough.

So, it is recommended to secure your business with product liability, then, it will stand for your business in the time of risk.

Sadler and Company, Inc specializes in providing product liability insurance for
start-up companies and small to medium-sized industries. They will lead everyone in the right path to get appropriate product liability insurance and also to get out of the peril happened for the firm. With this company, you will get sufficient product liability coverage and can handle the lawsuit with ease.

How Much How Product Liability Coverage Do I Need?

Run your business with peace of mind by insuring your business with PLI. PLI means
Product Liability Insurance. Product Liability Insurance will safeguard all businesses from lawsuits. This insurance covers product related defects for distributors, manufacturers, sellers, installers in all fields.

PLI coverage is very important because the cost of Product Liability Insurance averages 25 cents per $ 100 in retail sales.

If you are thinking about how much product liability coverage that your business requires
then you should keep in mind about the potential size of a compensation claim that
the consumer will file when they got hurt or property was damaged by using your products.

Also, based on the size of your organization, you should choose the product liability coverage.

In some situations, consumers may take advantage of product liability and file the lawsuit to get the new product or cash the situation.

It is recommended to check the entire client contracts to see whether the particular situation is covered in product liability insurance. Always, take the help of product liability insurance companies while going for settling a
claim. Why because the compensation claims are very high and you may lose a huge amount
when you make a move without knowledge in it. It will be hard to handle the case if someone got hurt or property got damaged or lost a resource by using your product.

Working with a trusted partner is the key to success in any organization. Sadler & Company, Inc. is the most renowned company with a lot of experience in this field offers the product liability insurance.

Paul Owens head of the team will guide you and make sure your business is protected against all claims.

Where Can I Get a Product Liability Insurance Quote Online?

It is an idea that is appreciable to get insurance quotes online to find about the
financial plan of the policy without actually buying the policy. Because this can serve as a determiner to find the right policy that fits according to the business type.

However, before actually taking a decision on the policy type, one must be clear about the Insurance Company that is giving a quote. This is because; there exist a lot of insurance companies with a variety of quotes to confuse the customer.

The right company will have the right key to unlock the right quote. On the other hand, it
saves your time and energy if you follow specific tips to find the right insurance

How to choose the right Insurance AGENCY?

  1. Check whether the insurance provider is regulated and authorized to
    insurance business
  2. Check the financial health of the company with the help of rating provided by
    financial health analyzers.
  3. Select a company that provides appropriate coverage according to your need
  4. Check if the insurer is an expert in your area of need.
  5. Compare the Premiums to find a cost-effective policy for your business.
  6. Understand the claim paying process

Not just this, consider all the weighing parameters which you have in your mind to
find the right company for your needs.

Paul Owens, Product Liability Specialist, and professional Industry Blogger lead Sadler & Company, Inc which is an independent insurance agency that specializes in
providing product liability insurance to start-ups, small to medium-sized businesses. This company is licensed in all 50 states currently insures businesses that manufacture, installs, imports, sells and distribute products such as sports equipment, pharmaceuticals, medical devices, children’s products, scooters, dietary supplements, chemicals, trucking and trailer, and nanotechnology products.

What Is the Cost of a Product Liability Insurance Policy?

Product liability: Product liability means a manufacturer, distributor, seller or anyone who trades a product to a consumer is liable to face a lawsuit if they deliver any defective product
or create any damage to property or personal injury using that product.

Product liability insurance policy: The product liability insurance policy is useful for manufacturers, installers, distributors to protect their businesses against legal liabilities.

It covers liability for legal fees, compensatory costs and any other costs associated with the case. In simple terms, we can say that product liability insurance policy helps to protect a
business against legal issues and also covers the expenses involved in the same.


Cost of a Product Liability Insurance Policy: A policy cost varies according to the type of business you possess and the revenue generated by your business per year. In general, those who sell low-risk products can get normal standard coverage which will be around $1000 whereas those who sell high-risk products the insurance coverage is very prominent which will be around $3000 to $25000 premiums based on the risk profile of the products.

On an average cost of product liability insurance for products in a low-risk category is
about $0.25 per each $100 in revenue. For example, if you sell $500,000 worth of
goods each year, your product liability insurance would be $1250 (0.0025 x

For high-risk category, it is suggestible to take the help of insurance brokers who are experts in this field before opting for product liability policy.

Right vendor of Product Liability Insurance Policy: The product liability insurance policy offered by the Sadler & Company, Inc includes all the protection you need for the company.

Paul Owens along with the professional product liability staff provide apt advise, monitor risk management from time to time and also saves your budget and time. Go here now to get a quote for the best insurance and risk management program at the lowest possible cost.


How Your Business Can Be Protected By a Product Insurance Policy

More often than not, business owners and managers find themselves at a loss as to how best to go about protecting their businesses against the implications of unforeseen and negative circumstances or events.

Although there are several available forms of protection or insurance for a business to choose from, the niche of a business is what should largely determine the type of insurance it settles for. Businesses that sell or manufacture products are arguably the most delicate of the lot.

This is mainly because the owners of such businesses are almost always responsible for the quality of the items or products they offer for sale, or manufacture; and any problem that occurs after these items had been manufactured or sold off the shelves can sometimes lead to expensive legal tussles.

Being covered by a product liability insurance policy is therefore, one of the smartest businesses moves that the management of a business can make.

Getting your business covered by a product liability insurance policy comes with a lot of related benefits, one of which is that such a policy effectually protects your business against losses, regardless of whether such losses are attributable to negligence, or whether they arise from injuries or losses suffered by customers or third parties.

Furthermore, product liability insurance essentially handles any financial implication that may result from legal defense or plaintiff settlements arising from drawn-out product liability lawsuits initiated by injured or aggrieved clients or third parties.

Product liability insurance can also go further to cover the treatment costs of affected persons or parties, as well as death-related restitution costs.

Humans naturally have been unlimited wants and needs that they struggle daily to satisfy.

These needs and wants to have resulted in, among many others, a never-ending circle of design, manufacture, marketing, and distribution. Very many people involved in this circle succeed in carving profitable niches for themselves.

The prevailing litigious nature today’s society, however, has necessitated the creation of new dimensions and approaches in the management of businesses in this industry. One of the such approaches involves individuals and companies dealing in product design, manufacture, or distribution, endeavoring to carry product liability insurance.

Injuries sustained while using manufactured goods can attract law suits ranging from suits for damages to personal property, to suits for injuries or incidences of wrongful death.

A product liability insurance policy would go a long way in helping to cushion the potentially crippling effects of such suits.

Product-liability insurance coverage is specifically intended to protect businesses from losses they might incur as a result of negligence, or injuries and damages inflicted on other people and their property. Moreover, in such scenarios, any legal charges involved are often covered by the insurance company.

Any person or company that engages in the design, manufacture, sales, and distribution of products, certainly needs to be covered by a comprehensive product liability insurance policy.

Being covered by a product liability insurance policy by SADLER means that in the event where a law suit is filed against a production business, as a result of any harm sustained by a consumer or third party throughout using its insured products, such a business will effectually be protected.