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Do I Need Product Liability for my Retail Shop? - Commercial ...

We are often asked this question: Does my retail shop need Product Liability Insurance?

Those who own retail stores should indeed consider acquiring Product Liability Insurance.

Product Liability insurance is a life-saving necessity for any size business which distributes or sells products in the United States.

One of the important things that Product Liability insurance does is to protect retail businesses against claims which are made about the sale of goods, products, foods, or medicines which are sold at the retail level.

Sometimes, this coverage is built into a general liability policy for a business as products completed operations insurance.

Product liability insurance covers the retailer?s liability for injuries and other losses which are suffered as a result of a product sold. Those injuries may be suffered by a buyer, a user, or a bystander.

This type of insurance covers a product which malfunctions, or one which is defective, and in some cases, it also protects the retailer from failure to warn.

A real-life example of exactly how product liability insurance works is clear when we review the 2007 incident which involved tainted pet food which was manufactured and packaged in China. Once manufactured, the dog and cat foods were imported to Canada, after which the products were sold to customers.

Thousands of pets died, and thousands more were sickened, some suffering damage to kidneys which will last their lifetimes.

And then, the barrage of lawsuits began. The Chinese and Canadian companies were insulated from lawsuits, because even if judgments were levied, obtaining that restitution would have been impossible.

One example of how product liability insurance can easily save a business from financial disaster. One of the affected retail outlets ? in this case, Wal-Mart ? ended up facing the hundreds suits filed by unhappy cat owners.

Just one lawsuit like this against a mom-and-pop store could easily result in devastation for the business. It is imperative that you examine your general liability policy in order to determine if more coverage is needed to protect your retail store.

Tags: Product Liability Insurance

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