Product Liability Insurance in Massachusetts

What is Product Liability Insurance?

Massachusetts businesses that are involved in the manufacturing or selling of products often continue to be exposed to substantial risk long after they offload products. Should a made or sold product cause illness, injury or damage, these businesses might be held financially responsible. Product liability insurance helps protect businesses in Massachusetts from many of the risks that come with manufacturing products for and selling products to consumers.

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Product liability insurance is a specialized form of commercial liability insurance that’s been crafted to meet the particular needs of businesses that make or sell products. Like other liability insurances, most product liability policies cover legal fees, settlements and judgements associated with covered claims.

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Product Liability Insurance Massachusetts

What Businesses in Massachusetts Need Product Liability Policies?

The protections offered by product liability policies are helpful to businesses that make and sell products in a variety of capacities. Some examples of Massachusetts businesses that might want this type of insurance include:

  • Manufacturers
  • Distributors
  • Wholesalers
  • Retail stores
  • Ecommerce stores
  • Delivery companies

Businesses that aren’t sure whether they need this type of insurance can talk with an insurance agent who specializes in product liability policies to see whether getting one of these policies makes sense for them.

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What Types of Products Do Product Liability Policies Cover?

Depending on their terms and conditions, product liability policies might be drafted to cover a wide range of products. Everything from kids toys and common housewares to furniture and power tools may be insurable through a well-crafted policy.

Even foods and beverages can usually be covered by a suitable product liability policy. Although these aren’t necessarily what most people think of when they consider products, foods and beverages are still goods that companies make and sell to consumers. If a meal at a restaurant or an energy bar makes someone seriously ill, the restaurant or food manufacturer that offered made it could potentially be held liable.

Foods and beverages show just how diverse the products that product liability policies cover can be. Any business that possibly makes or sells a product should talk with a knowledgeable insurance agent to see whether their goods justify getting this form of insurance.

What Kind of Claims Do Product Liability Policies Cover?

The exact claims that any one product liability policy covers are determined by that policy’s terms, conditions and exclusions, but there are many claims that these policies may cover. Some of the more common risks that businesses frequently can get coverage for include:

  • Flaws in design
  • Defects in manufacturing
  • Errors in production
  • Insufficiencies in warnings
  • Errors in instructions

Do Product Liability Policies Cover Damage to Products in Stock?

Product liability policies generally are liability-only policies that don’t normally protect property. The usually don’t cover damage to products that are kept in stock. 

For coverage against perils that could damage or destroy products, businesses usually need a commercial property insurance policy that includes contents coverage. Agents who are familiar with product liability policies can likely also assist with commercial property policies, and the two kinds of policies can often be purchased together even though they remain distinct protections with their own definitions.

Product Liability Insurance Massachusetts

Do General Liability Policies Cover Product-Related Liability Risks?

Some general liability policy may offer basic protection against product liability risks. This coverage isn’t standard among general liability policies, though, and even those that do offer it frequently provide only minimal protection against product-related liability claims. 

Thus, the vast majority of businesses that are involved in the making or selling of products need a separate product liability policy. As is true with commercial property policies, a general liability policy and product liability policy can often be purchased together even though they remain different from each other and have their own terms.

How Can Businesses in Massachusetts Get Product Liability Insurance?

For help finding product liability insurance, contact the independent Massachusetts insurance agents at Scotti Insurance Agency. Our agents have the expertise necessary to help you get the right product liability policy for your business, and they can help with other types of commercial insurance as well.

 

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