Lots of businesses need product liability insurance to keep them afloat. It's just a fact that we live in a litigating society, and with that in mind, any products that come out of a business have the potential to lead to issues of product liability. So what do businesses do? Comprehensive business product liability insurance plans often work to "hedge" against these kinds of contingencies.

If a business needs training for in-house staff on how to handle this kind of consideration, there are various options, including formal training courses or quick resources for getting to know more about the issue. Business decision makers can find:

1. Schools offering training classes in product liability insurance carrier methodology and similar coverage for a business.

2. Sites offering specialized info on professional product liability insurance quote and plan options by field.

3. More from public blogs and info pages or forums where business leaders discuss product liability insurance.

Action Steps
The best contacts and resources to help you get it done

Find courses in product liability insurance

One way to get fully trained on the issue of figuring out product liability insurance cost is through classes, programs, or seminars handled by a wide variety of schools. Check out the options for sending a staff member to school for this kind of skill set.

I recommend: Insurance Claims Consulting handles course work in products liability quotes and plans for beginners who are wanting to handle these kind of claims or work in other capacities within the field. For an international look at product liability insurance, check out the courses and seminars available at EuroMoney Training. For continuing legal education events, check the Products Liability Committee page of the American Bar Association. The Practising Law Institute offers live and recorded continuing legal education on product liability insurance law.

Check out specific info on product liability insurance by field

Other sites are talking to specific professionals, like personal fitness trainers, who need to be insured against liability for client injuries, and in the general medical field, where liability is always an issue.

I recommend: Learn about how product liability insurance fits into an overall insurance scheme for personal fitness trainers at the IDEA Health and Fitness Association. For a look at how medical professionals do product insurance and other kinds of legal work, see Kaplan's College of Professional Studies.

Use blogs and forums to get more on product liability insurance

Sometimes, when a business wants to just learn the ins and outs of a particular interest like product liability insurance policy options, the web can be a great informative resource through public pages where experts and experienced business people hold forth on the issues of the day.

I recommend: Use the Business Insurance Forum to find out how some managers and decision makers handle issues of big or small business product liability insurance in the workplace. Or check out relevant posts at the blog at All Insurance Info.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure that product liability insurance education and training addresses the particular needs of the business: sometimes, a broad-spectrum approach may not be the right solution. If your focus is very specific: for example, a limited line of products, skip the general quotes training and focus in on how to get just what you need for coverage.

If you’re a small business that manufactures or sells any type of product, then you should consider taking out product liability insurance. With product insurance, you’re assuring protection in the case of injury as a result of a person using your product.

Before you find a product liability insurance carrier, you’re going to want to consider a few things. You’ll have to decide on how much coverage you want to take out as well as get a risk assessment. Companies which sell or manufacture potentially unsafe products will receive a higher product liability insurance quote.

1. Determine whether you would benefit from small business product liability insurance. If you sell or manufacture non-hazardous materials (like paper products), then the cost may outweigh the risk.

2. Find a specialty insurance broker that can locate you a low cost product liability insurance policy. Brokers can advise you on the best policy types and carriers for your industry.

3. Enroll with a business product liability insurance carrier. Complete the paperwork and start your coverage.

Action Steps
The best contacts and resources to help you get it done

Hire a product insurance broker

With a small business insurance broker, you can have them work with a range of carriers to find the best price on products liability insurance. They can also let you know if you would benefit from additional coverage from a different type of small business insurance policy.

I recommend: Find an insurance broker in your area by putting in your location on Stuckey & Company. The brokerage firm handles multiple types of business insurance plans. You can perform a similar search by using the agent finding tools on Trusted Choice.

Locate product liability insurance companies

When you rather deal directly with a product liability insurance carrier, you can forgo the use of a broker. Find companies that offer business product liability insurance and the type of coverage amounts that they include with the policy.

I recommend: Send an online request form on the Coffin Insurance site in order to get in touch with one of their products liability insurance agents. Johns Insurance Agency can also offer your commercial operation product insurance. The company extends coverage to multiple industries, including retailers, shopping center owners, manufacturing companies and more.

Receive a product liability insurance online quote

In order to compare each company, you'll want to request a product liability insurance quote. Use these online quotes to determine which policies prove affordable for your company.

I recommend: Download and email the application to Sadler & Company, in order to receive a quick product liability insurance quote. You can also call the toll free number and request a quote by phone. Receive multiple quotes on product liability insurance from Chase Carmen Hunter Insurance.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If your small business belongs to a certain type of association or union, you may receive lower products liability quotes from insurance carriers. Many carriers can offer group rates through these associations.

Unfortunately, lawsuits have become a normal part of doing business. Whether your company designs, manufactures or distributes a product, you probably need product liability insurance. Not only will a liability policy protect you against lawsuit judgments and settlements, it will also cover legal fees that result from litigation.

Product liability laws vary by state, so your coverage will as well. Because lawsuits are so prevalent, finding coverage may be a challenge, especially if your product is considered to carry high risk to the consumer.

Action Steps
The best contacts and resources to help you get it done

Product liability

If you sell a product that harms property or consumers, you, your suppliers, wholesalers and retailers may be liable for the damages. Product liability statutes are set at the state level, but the U.S. Department of Commerce developed the Model Uniform Products Liability Act, which states can voluntarily adopt.

I recommend: Cornell University Law School offers an overview of product liability.

Stream of commerce

Perhaps your company did not manufacture a faulty product. However, if you designed it, or supplied materials for it, or transported or sold it, your business is part of the stream of commerce and therefore potentially vulnerable to lawsuits.

I recommend: Haymond Law explains who may or may not be held responsible under liability statutes.

Manufacturing flaws versus design flaws

A manufacturing flaw results from the improper manufacture of a product. For instance, if food is improperly handled it may cause illness. A design flaw results from poor planning. If the product's design was faulty, but that design was manufactured according to specifications the flaw is a design issue. You can be held liable for either.

I recommend: FindLaw explains manufacturing and design flaws.

Defective or insufficient warnings

If your product is dangerous but you do not properly notify the consumer with a large label or other disclaimer, you may be held liable.

I recommend: Nolo has an overview of different types of product liability, including liability that arises from inadequate warnings or instructions.

Aggregate products liability limit

The aggregate products liability limit is the most your insurance provider will pay on claims while your policy is active.

I recommend: Investopedia explains the concept of aggregate products liability limits and what it could mean for your business.

General liability

Product liability insurance is often packaged with general liability insurance. General liability insurance usually includes premises and operations coverage, which protects businesses from lawsuits resulting from an injury that occurs on their property.

I recommend: Sadler & Company gives a rundown of the coverage included in its commercial general liability insurance package.

Businesses that manufacture or sell any type of products should always ensure that they comply with product liability insurance laws and regulations. Under product liability laws, manufacturing firm owners are held responsible for ensuring that their products are safe and don’t pose risks to the general public.

Products liability insurance covers the company’s liability for losses or harm to buyers and, in some situations, defective product design. product liability insurance regulators enforce federal and state insurance laws and ensure that businesses have access to affordable product liability insurance policy premiums. To learn more about product liability insurance laws and regulations, you should:

1. Determine which U.S. laws apply to product liability insurance.

2. Find out which agencies regulate product liability insurance.

3. Evaluate product liability insurance tax laws.

Action Steps
The best contacts and resources to help you get it done

Learn about U.S. product liability insurance laws and regulations

In response to the shortages of businesses qualifying for an affordable product liability insurance quote in the 1980s, the federal government implemented the Products Risk Retention Liability Act to increase the availability and affordability of business product liability insurance. This Act, now referred to as the Liability Risk Retention Act, allows businesses to form risk retention groups to self-insure their risks as a group. This Act required that the group formed have similar businesses and risk exposures.

I recommend: Learn more about how this Act affects product insurance by checking out the National Risk Retention Association. You may also consider checking out the National Association of Mutual Insurance Companies for information on how small business product liability insurance is regulated and how the product liability insurance carrier is affected.

Gain an understanding on how product liability insurance is regulated

Product liability insurance regulators are charged with the responsibility of protecting both consumers and insurance providers by allowing consumers to have access to competitively priced insurance products and providing an environment in which competitiveness is encouraged.

I recommend: Find out more about how product liability insurance companies are regulated by visiting the National Association of Insurance Commissioners, an organization that includes insurance regulators from across the country. You may also consider reading the Insurance Journal to find out more about how product liability insurance is regulated.

Research tax definitions of product liability losses

The Internal Revenue Service (IRS) has specific laws that address how a business owner should address product liability insurance losses. Per the IRS code, product liability losses have very specific definitions. When determining whether or not a business is facing a product liability loss, business owners should refer to the IRS code.

I recommend: Read more about how product liability losses are defined by visiting the IRS website. You may also find out more by checking out GPO Access.