Does General Liability Insurance Cover Product Liability Claims?

Many businesses invest in general liability insurance to help manage everyday risks and substantial expenses associated with lawsuits and other claims. This policy is essential for any business that creates, manufactures, distributes or sells a product.

Does General Liability Insurance Cover Product Liability Claims?

General liability insurance usually includes coverage for product liability claims. This means that if a product your business manufactures or sells injures a customer or damages another person’s property, your insurance may cover medical expenses, legal fees and any settlements or judgments against your business.

A general liability insurance policy may help with product liability claims related to the following:

• Design defects that were present before the product was manufactured

• Manufacturing defects that occur during the production process

• Strict liability occurs when a customer is injured by a manufacturer’s product, even if the business owner is not found negligent

• Improper warnings, which can arise if a business owner fails to provide adequate instructions or warnings on the proper use of a product

What Else Does General Liability Insurance Cover?

Beyond product liability, general liability insurance may provide financial protection against claims related to the following:

• Third-party bodily injury that occurs on your property or as a result of your services

• Third-party property damage caused by your employees or business operations

• Personal injury claims, including defamation, libel and slander

• Claims related to your business’s advertising practices

Secure a Policy Today

The Marvelous Associates Inc. in Lake Worth, Florida, can help your business obtain optimal coverage at the best possible rates. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.