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What is Product Liability Insurance?

As the owner of a business, you are liable for any products you manufacture or sell—and if somebody is hurt as a result of using the product, you may be at fault for the incident.

When you ask for coverage from our agency, we will determine the likelihood of a lawsuit being brought against you as a result of one of your products being used. Our experts can identify the risks associated with your products or services and appropriately scale a policy to cover those risks. We can also offer advice on how to make your products less prone to risk. This may involve modifying your product, packaging it differently, or changing any instructions and warnings included with the product. When done well, these precautions can help reduce the company's liability and stop customers from using the product in an unsafe way.

Do I need Product Liability Insurance?

If your company manufactures or sells any kind of product, it is strongly recommended that you have some form of liability coverage. Even products that are widely regarded as 'safe' can malfunction in a way that causes harm to the user, and defending against a lawsuit is usually expensive enough that many companies (and claimants) prefer to simply settle out of court. Product liability insurance can reimburse you for expenses (including defense costs and settlements) that occurred during this process.

Product liability cases that go to court are among the most expensive forms of personal injury cases, and as of 2013 these cases had an average payout of more than $6 million. All companies that obtain this type of coverage are encouraged to have a policy limit higher than the median payout—anything less makes it likely that your company will suffer significant losses if a jury decides against you.

Don't forget to talk to your agent on a regular basis as your business continues to grow. Larger businesses often face larger risks than smaller ones (including, among other things, increased exposure as a result of having more customers who could potentially file a lawsuit). A plan that suffices for a small company may not be enough to protect a large one.

What does Product Liability Insurance Cover?

Product liability insurance mainly covers the legal obligations of a company. This may include payments like:

  • Court fees
  • Legal defense costs
  • Personal injury awards
  • Out-of-court settlements
  • Miscellaneous fees that may occur during any of the above

If you feel any of these forms of coverage are missing from your policy, or if you are starting a business and need product liability coverage, speak to a Red Wave Insurance Services agent or request a quote today.

 

1. Ross, Kenneth. "The Role of Product Instructions in Product Liability Prevention." In Compliance. April 30, 2015. Accessed April 18, 2016. http://incompliancemag.com/article/the-role-of-product-instructions-in-product-liability-prevention/.

2. "Settle Your Personal Injury Claim." AllLaw.com. Accessed April 18, 2016. http://www.alllaw.com/resources/personal-injury/settle-your-personal-injury-claim.

3. "Product Liability." III. Accessed April 18, 2016. http://www.iii.org/fact-statistic/product-liability.

Our Location

Red Wave Insurance Services

2901 Moorpark Ave. Suite 260
San Jose, CA 95128
Main office: 408-609-3966
Fax: 888-733-1767

Our Providers

Testimonials

Excellent and Professional Service. Thank you Red Wave for going above and beyond my expectations and being there when I needed information. Your service is awesome and you really went out of your way to do so. Thank you again.

Jesse S.
All my insurance needs. I've used Red Wave for all my insurance needs. Home, auto, life and health/dental for my family. My agent, Michelle shopped different insurers for me and found the right fit for my family's needs. Great service and great pricing. Whenever I had questions, she answered them for me. For heath insurance, we looked at Obamacare vs my grandfathered health plan and I stayed with my grandfathered plan. I appreciate the comparative feedback so that I could make the best decision for my family. For auto and home, I was provided several quotes from different insurers. I like this option where I can shop for the best pricing and plans. I highly recommend this company. For life, I needed a policy to protect my family if something were to happen to me. I feel I've protected my family

Koon Y.
I have been insured with Red Wave for several years and hold an auto and rental property policies. Michelle Lin has been stellar to work with when I have had to file claims she has always made the processes simple and streamlined. She is extremely receptive of the requirements and needs of her clients. I have never had issues filing claims and or receiving insurance pay outs. She is very professional and friendly, I would recommend anyone looking for an insurance policy to work with Michelle.

Jeff F.
I needed flood insurance in a pinch after my lender force-placed an expensive policy on a rental property. I emailed Michelle and she let me know my options very quickly and found a policy that will save me over $1200 per year! As a broker, she can shop around for the best rates and programs available. Throughout all our communications and interactions, I found Michelle to be very professional, knowledgeable and straightforward. I highly recommend Red Wave to anyone needing advice and product with all things insurance - you will be in good hands.

Richard W.
I've been using Red Wave for all my personal and professional insurance needs for the past few years. All I can say is that I HIGHLY recommend this company. Michelle(the Broker) is very professional, friendly, and is fully committed to finding the policy that would be in your best interest. She is so patient in answering my endless questions(even repeated ones) and does a wonderful job in making sure I was comfortable with the policy before I signed any papers and put money down. I am a very satisfied customer who will be sticking with this company for a long time! :)

Nancy L.
Got the lowest insurance rates thanks to Michelle. Great service!!

Nathan C.
Very quick and thorough service. Saved us lots of money too! We got home insurance through Michelle. Michelle takes the time to go through the various insurance items and explains what the various items are and which features are important for your particular requirements. Instead of selling a one size fits all package she makes sure the coverage is appropriate so you don't end up spending more than you want or getting less than you need.

J.L.
First off, Michelle is a super nice person. You can tell she really cares about her clients and doing the right thing by them. Being an ex-cop, trust doesn't come easy....I was introduced to Michelle by another business person that was raving about her and what she had done for some people. Since Michelle is an Independent Broker, she is not beholden to any insurance company and can shop ALL of them for the best fit, unlike most brokers. I introduced her to my client and she totally took care of them, going out of her way to help. 5 stars!!

Steve B.
I was introduced to Michelle at Red Wave through a friend and I've been getting insurance through her ever since. We have our cars and home insured through Red Wave and benefit greatly from her quick response and action time. Would recommend her to anyone looking for an insurance broker.

Kirby C.
Michelle is a great insurance agent - she was able to find us a very reasonable rate and was very responsive in helping us work through issues related to our cars.

Mona W.
Michelle helped me with a home policy. I gave her 5 as the service was very efficient, cost effective and her explanation was always very clear.

Eugene C.
Michelle is superwoman. She's an honest, no-nonsense kind of gal. Highly recommended.

Christina V.