Posted by : Dan Levenson Wednesday, August 27, 2014

Health insurance, worker’s compensation, and commercial property insurance—these are some of the most common types of insurance coverages that businesses should have. However, what many fail to take into consideration is the importance of product liability insurance. This also falls under errors and omissions insurance, and for good reason, too.
Product Flaws
When one thinks of product liabilities, manufacturing errors is often the first thought to cross the mind. This problem is rampant ever since the beginning of the Industrial Revolution, where every step of the manufacturing process could be tainted with imperfections or mistakes. Though mass production processes are much more refined today, flawed products remain one of the most common sources of business lawsuits.
Design or Instruction Defects
Sometimes though, the manufacturing process isn’t to blame, but the very nature of the product itself. Many customers often file class action suits claiming that a product’s design is hazardous, ineffective, injurious or even downright deadly (when it shouldn’t be). In some cases, the manufacturer failed to give sufficient instructions as to the product’s proper use.
Failure to Warn
Even with sufficient instructions as to use, a manufacturer could nonetheless fail to provide sufficient information as to the danger or hazards that a product poses. This is especially true when it comes to chemical cleaners, fertilizers, or other substances and products that can potentially harm the user.

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