If you manufacture, sell or distribute a product, there is a possibility that the use of the product could cause bodily injury, thus the need for product liability coverage. The example everyone thinks of is a stepladder. Next time you are at the home improvement store take a look at all the warnings that ladder manufacturers put on their product. Who really needs to be told not to stand on the top rung of a ladder? But it is because of the product liability hazard that manufacturers feel it is necessary to include so many warning with their products. Even if you are not the manufacturer, and simply sell someone else’s product, you could still be liable.
The second part of this coverage is completed operations coverage. If you install or repair products such as a heating system, you could be negligent should damage be caused by your work after your work is done. Let’s say that you installed a new furnace in a restaurant, and later that day a fire ensues. The fire marshal determines that product literature that was left inside the furnace caught fire further melting a plastic cover causing black smoke to spread throughout the premises. The business had to close until repairs and cleanup could be completed. A substantial amount of money was lost and the cleanup was in the thousands of dollars.
Both of the situations cited above would be covered if your policy includes products and completed operations coverage. Not sure if your package includes this coverage? Give us a call to discuss your coverage needs. Hubbard Insurance Agency provides business insurance to Rocky River and all of Ohio and we are here to assist with your coverage questions.