Your business’s protection from product liability

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Your business’s protection from product liability

On Behalf of | Jan 18, 2022 | Product Liability |

Retail store owners and suppliers in Texas may be sued for defective products like product manufacturers are. Protecting your business from lawsuits involves learning about the types of protections offered to you, like product liability insurance.

How your business is protected

A manufacturer or business owner generally does not have to obtain a separate policy for product liability insurance. The coverage is often part of a general liability policy. You are often required to buy general coverage that provides minimum levels of protection. Overall, getting coverage for product liability is the first and most important step to protect your business from the legal consequences of defective products. You are protected from all types of damages caused by faulty product designs, defective manufacturer designs and false marketing claims.

Other precautions to take

Business owners have additional ways of protecting themselves from product liability lawsuits. They are encouraged to perform product testing immediately after a product is manufactured. They should also provide clear, detailed warning labels on items that they know have confirmed dangers. They should work closely with the manufacturer to ensure high standards of quality at every stage of production.

Protecting the business itself

Any retailer can sell a defective product and face a product liability claim from the customer. However, you have the right to obtain insurance coverage to pay the injured customer so that you avoid getting sued and suffering a hit to your business’s finances and reputation. While a customer is entitled to legal protections and compensation for defective items, the business also has the right to protection in product liability cases.

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