While most businesses are required to have commercial insurance, it’s important to note that product liability insurance is not the same thing. Commercial insurance policies protect your business if something happens to one of your clients as a result of your work. For example, if you are in the construction business and your crew cuts the power cable to your client’s house during renovations, the client can make a claim against your commercial insurance to cover the cost of repairs.
Product liability insurance, on the other end, protects you from legal responsibility if a client is injured by your product. For example, if your business is selling furniture and a client is injured by a sharp edge, that client can make a claim against your product liability policy. Contact Harris Insurance in Jasper, AL for expert insurance advice.
Commercial Insurance: What You Should Know
Commercial insurance policies are designed to protect your business against financial loss if a policyholder sues you for a commercial or business-related reason. Product liability insurance, on the other hand, is designed to protect you against financial loss if a policyholder sues you because your product caused them an injury.
If you’re a manufacturer, wholesaler, retailer, or provider of a service operating as a business, you need to get commercial insurance. You have a policy that covers your business against financial loss if a customer sues you for a slip and fall. That’s commercial insurance. Now you’re also selling coffee beans, but this time you’re selling them as a product. Let’s say someone sues you because they say the coffee beans you sold them gave them an allergy. That’s product liability, and you need separate insurance to protect yourself against this claim.
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Even though product liability and commercial insurance might be part of your business policy, they are different policies with different coverage. Commercial insurance is designed to protect your business against potential risks like property damage or bodily injury, which your business might encounter in the course of conducting its daily activities.
In contrast, product liability insurance is designed to protect you from liability if a customer were to get sick or hurt from a product you distribute, or if a customer were to sue your company because of a product malfunction or a malfunction in the supply chain. For inquiries in the greater Jasper, AL community, contact Harris Insurance.