Dr Salam Fayad`s Blog Site

Why Product Liability Insurance Can Prove Useful

The proper definition of product liability insurance has to be understood by the consumer or the end user as well as all those who are involved with the product, right from the manufacturer to last level retailer or the seller who could even be a gray market small time profit maker. When you buy a product from some small time retailer and it causes you or any other user any kind of bodily harm while using it or otherwise, you are entitled to lodge a complaint against the seller and the manufacturer both. The seller cannot wash his hands off saying that he was only selling the product and hence is in no way accountable for the performance of the product. He would have extolled the efficacy of the product prior to selling it to you and he cannot run for cover when you complain about the product. Hence, every manufacturer, distributor, dealer, retailer and the ultimate seller all are liable for owning up the responsibility in case a product turns defective or causes damage of any kind. Product liability insurance will protect or indemnify them in such a situation and will cover all such expenses which include injuries to the user or the onlooker, or damage to his property, lawyers’ fees etc. Hence, a manufacturer or the distributor will have to be very specific and give the correct information about the nature of product, the warnings mentioned on the product, the volume or the extent of sales, etc. in order to ensure that the coverage is realistic and protects him from any unforeseen eventuality.