Running a business can be fun, exciting, and a little stressful at times, especially when you think about how much money you invested in this new venture. While the start-up costs can add up quickly, there is one thing you don’t want to run your business without and that’s product liability insurance. While you may want to avoid adding another expense to your business, let us explain. Product liability insurance is designed to respond to industry risks your business faces every day, can fulfill contract requirements for retailers, and provides peace of mind knowing your assets are protected. Let’s give you a run down of why product liability is worth your time and consideration.
Financial BackingAs a business owner, one of the most stressful things to deal with is a lawsuit and the chance of getting served is a huge reason why you should include insurance coverage to your business strategy. Product liability insurance is designed to cover third-party claims, such as: Design defect (an issue with the actual design of the product): For example, a customer purchases a table and it is structurally unstable. Due to this issue, the customer injures themselves after using it. Manufacturing defect (an issue with the manufacturing process): For example, a customer is injured because the packaging wasn’t manufactured properly. Labeling defect (a lack of information or warning on a product label): For example, a customer experiences an allergic reaction from eating your granola bars. The label didn’t specify that the product contains traces of peanuts. Could you handle the expenses a lawsuit can entail? From paying for a lawyer to covering travel expenses for your legal team, costs can add up quickly and put financial stress on your business. Even if this is something you can handle on your own, there are so many better things you can do with your money, such as building your business even more or treating yourself for a job well done. With product liability insurance, it can cover expenses you may be legally obligated to pay.
Fulfills Contract RequirementsOne exciting thing that comes with working with products is the opportunity to sell it in retail spaces. Once you land that contract with your dream retailer, you want to make sure you work with an insurance company that has experience helping business owners with retail contracts. At Insurance Canopy, we have over a decade of experience with helping business owners find and fulfill those retail contract requirements with product liability coverage. We have helped people fulfill retail contracts for:
- Whole Foods
- Ulta Beauty
- Rite Aid
- And more!