Whether you sell items or use them for your daily business needs, product liability insurance is essential. If someone were to get hurt because of the mattress or pillow your doctor’s office used, you would be held responsible for restitution. Likewise, products that were sold by you and defective or harmful could lead to a lawsuit.
What Is Covered?
Each policy will be different and may be tailored to your particular needs. However, it can cover manufacturing and production flaws that could lead to unsafe defects, design problems that lead the item to be unsafe for use, or not providing instructions and appropriate warnings for use.
Why It’s Necessary
If you don’t already have coverage, you may want to consider getting a free quote. Even though the items are manufactured by someone else, most states use a stream of commerce model. This means that if you, your practice or your company uses the item or sells it at a retail/wholesale shop, you can be held liable for any damages to the user.
For example, if you purchase a pillow that is supposed to be hypo-allergenic for your clinic and someone has an adverse effect, they could sue you. However, you didn’t know that the pillow was defective, but could still be held accountable. Product liability insurance will find the next person in line and require them to be responsible, as well.
What You Need
It is essential that you get enough coverage, but you don’t want to pay too much. Getting a quote from a few companies will help you get a better idea of what is covered, how much is covered, and the prices you’ll pay. While the quote itself won’t give you what you need, you can then seek coverage that is suitable.