An individual can claim product liability insurance to you when a product that you have sold to that person injured him or his property. In this situation, the manufacturer of the product is liable for that insurance. Now, we will discuss who needs this kind of insurance. So, if you are the manufacturer and the seller of that product, you are responsible for that. But in case, you are not the manufacturer but only the seller, you will not get affected. But keep in mind that you must not get confused about this product liability insurance with a guarantee and warranty of the products.
No matter, whether you are the manufacturer, distributor, or seller of a product, with this license, you are safe. This insurance will protect you as well as your business from spending more costs on the court and legal formalities. The money you have to pay depends on the intensity of the damage that the faulty product caused to a property or any person. You have to pay compensation for that damage without any second thoughts. So that, you can save your company from any bad name which will influence the reputation of your name.
To avoid this kind of situation, ensure that you have taken the insurance for product liability from reliable services like Grand Trust Underwriters. This insurance policy can cover several things such as the cost of defending litigation, compensation cost for an injured person or damaged property, and other costs too. This way, you can save your money and the name of your company too.