Any product can be insured under product liability insurance. The liability may arise out of factors such as:

• Product defect which causes injury, loss, harm or damage to a third party or his/her property
• Packaging defect which compromises the safety of the product and causes harm to the third party.
• Improper use of the product, absence of warning labels/ precautions, etc. which affects the performance or quality of the product.

There’s a common misconception among some small business owners that they don’t need insurance, or that it’s too expensive. The truth is, whether you’re a baker selling delicious cupcakes, or a boutique selling the trendiest clothes—you should always protect yourself from the risk of product liability claims. The minute you start selling your product you’re at risk for product liability lawsuits, which can be very expensive and time consuming.

If a claim is filed against your business, and the product you sell and/or manufacture is found to be responsible for causing a customer to suffer bodily injury or property damage, your business will have to pay. When you have product liability insurance, you have coverage that is designed to respond to these situations.