What do investors, manufacturers, distributors, suppliers and retailers have in common?
If you guessed product liability exposure, you are correct. Each of these entrepreneurs shares the risk of product malfunction or the danger of the merchandise placed on the public.
Here are five different but related types of insurance coverage that can protect a business from loss or damage as a result of an error. The following forms of coverage can protect you from a liability claim and lawsuit.
Product handling insurance coverage
Although a company that makes a product accessible to the general population is not behind a tampering incident, it may be liable for damages. Product handling insurance covers you in the event that someone else has tampered with or warned about the possibility that a product may be damaged.
Associated coverage extends to the following.
• Eradication of manipulated merchandise
• Loss of earnings
• Expenses related to the withdrawal of the merchandise
• Costs associated with the repair or restoration of products
This type of insurance does not include civil liability. It also does not cover related extortion costs.
Product Warranty Ineffectiveness Insurance Coverage
Compared to a specialized warranty or surety bond, the product warranty ineffectiveness policy was first created for investors and/or manufacturers producing alternative forms of energy sources. The coverage protects against financial damage that occurs when the system does not work as it should. Currently, this form of coverage is also offered to investors and/or manufacturers of other types of products.
New/Dangerous Product Liability Insurance Coverage
Certain types of manufactured products are more prone to hazardous liability. This may include products such as:
• Drugs or medications
• Cosmetic products
• Chemical products
• Auto parts
• Other products that are subject to risks and damages related
For the most part, the specialty insurance market offers product liability insurance.
Retroactive Product Liability Insurance Coverage
This insurance coverage changes the policyholder’s claims form to a claims form. Insurance can be customized to cover:
• A specific amount of time that retroactively protects claims from particular months going back
Prayed
• Comprehensive coverage of incidents dating back to the initial date of insurance for claims made
Prayed
• Continuous occurrence coverage that protects against all previous acts
It is also possible to obtain occurrence coverage through the use of an insurance policy that increases the detection time of the claim form that has not been renewed for a certain number of years or for an unlimited time.
Product recall expense insurance coverage
The product withdrawal expense policy provides the insured with greater expense coverage, rather than legal liability coverage. Direct costs involved in a product recall are covered.
Examples of product recall fees are:
• Communication costs
• Shipping costs
• Radio and television transmission costs
• Payment to additional employees required
• Overtime pay for regular staff
• Product destruction costs