What Does Product Liability Insurance Cover?
Product liability, in general, incorporates insurance, a knowledgeable legal team, and constant evaluations of product components, manufacturing process, and so on. The reality is that literally any product has the potential to cause harm or property damage, and the resulting claims can be complicated.
Remember the uproar when McDonald’s got sued for selling coffee that was too hot? Food, for instance, can not only burn people, but it can make them sick. A poorly-designed bunk bed can become a death trap if there is a fire. A blender could overheat and explode. A weed wacker with a poorly-made component can easily hurt the user or someone nearby.
Without product liability insurance, businesses would have to pay for lawsuits out of pocket if their products ever hurt anyone or anything.
What Is Product Liability Insurance?
Product liability insurance is designed for companies that create products and sell them to the public. Product liability insurance protects such companies in case one of their products has a defect, if there is a design flaw that was overlooked, or if one of the product components was damaged or poorly made. This type of insurance also covers businesses if a product causes an injury or damage to someone’s property.
Who Should Get Product Liability Insurance?
Manufacturers, wholesalers, retailers, and distributors that sell a product to the public, to other businesses, or that have a supply chain would be well-advised to secure product liability insurance. It doesn’t matter if it is a tiny cottage industry selling just a few units of an all-natural, seemingly harmless item or a worldwide mega-conglomerate corporation.
In a product liability lawsuit, the plaintiff has the ability to sue the companies involved in producing the product that caused them injury—whether it’s a widget factory in Indonesia that only makes one part of a product or the design team who laid it out the specs. Many companies might not have the funds to cover all of an injured plaintiff’s losses every time a product-related accident happens. This is where the corporation’s product liability coverage comes in.
What Occurrences Are Covered by Product Liability Insurance?
A general business liability policy can cover products in some cases, but each insurance policy is different. Here is a general list of the types of things product liability insurance helps with:
- Defective parts or components
- Incomplete or inaccurate warning label
- Manufacturing defects, production inconsistencies
- Incorrect or inaccurate product instructions
- Design flaws
- General liability (meaning a product was not in any way defective but still caused an injury property damage)
Common Losses of Product Liability Victims
The reality is that product liability claims can have high dollar amounts. A defective or dangerous product can result in severe injuries and losses, and victims can seek total compensation for their losses by filing an insurance claim. Companies should have enough coverage to pay for the losses of injury victims, so they do not have to dig into the business’s own pockets or – in some cases – file for bankruptcy.
Some losses that an injured victim might seek include:
- Past and future medical expenses
- Past and future lost income
- Pain and suffering
- Permanent impairments or disfigurement
- Wrongful death
Some products can cause catastrophic injuries that change a victim’s life forever, and their lifelong losses can easily reach the millions. Sometimes, a product can cause injuries to many people, who all file a class action or mass tort case. The right insurance coverage is critical in such situations.
Varcadipane & Pinnisi Are New York Product Liability, Lawyers
Product liability laws in New York can be complicated to navigate—you need someone with experience to help. Varcadipane & Pinnisi, PC has a solid track record of litigating all aspects of product liability cases for injury victims. As New York personal Injury attorneys, we can help you if you have an issue with a defective product that has caused injuries and losses. Contact us now for a no-cost review of your product liability case.
Author Bio
Dawn M. Pinnisi predominantly handles injury claims in New York and New Jersey on behalf of victims of products liability, professional malpractice, and negligence. She has twenty years of litigation experience advocating for injured clients and has recovered millions of dollars in jury verdicts, settlements, arbitrations, and mediations.
