Why Your Manufacturing Company May Need Liability Insurance
Whether your company makes car engines or pot pies, your products likely reach a large of number of people. While your customers provide a source of revenue for your business, they also contribute to potential litigation risk. When creating a comprehensive risk management strategy, it is important that companies consider purchasing manufacturing liability insurance.
Your business assets are valuable. They allow you to continue to make money by manufacturing whatever product you make. But, with the ever-growing number of lawsuits each year, your business assets are at risk. Should a court determine that a defect in a product your company made injured someone, your business could potentially lose everything. Even more alarmingly, in certain situations, a business owner’s personal assets might be fair game in a lawsuit.
While most claims fall under the purview of your general commercial liability insurer, some defects in manufacturing might not be covered. Having specific manufacturing liability insurance can provide much peace of mind that manufacturing mistakes will not bring your business to a standstill. And, because manufacturing coverage generally lasts as long as a product you made is in use, you can be confident that a liability claim years in the future will not harm your company.
Even if you have general commercial liability insurance, you may want to purchase additional liability coverage as part of your company’s risk management strategy.