Owning and operating a small business comes with plenty of responsibility and accountability. Even if you operate with the utmost care and provide the best quality and services, the unforeseen can occur – an accident, an injury, a mistake, a misunderstanding that escalates. Is your business protected with liability insurance? If not, your business and personal assets may be in peril.

Almost every business needs some form of general liability insurance coverage (also known as commercial general liability insurance) to protect company assets and sign important contracts. General liability can help small businesses pay for unexpected lawsuit costs, sign deals with new clients, rent commercial space, and avoid bankruptcy. This policy also reassures clients that you’ll be able to compensate them if you damage their property or injure someone with your work. Most small businesses get a policy shortly after they are founded.

Product Liability Insurance in Murrieta

Business Liability InsuranceProduct liability insurance is recommended for any business that supplies products. Product liability insurance is often included in our industry-specific business insurance packages. And it is designed to protect the end user of a product by giving businesses the ability to quickly provide compensation if a product is defective.

Public and product liability insurance is an essential cover for businesses that regularly deal with clients and members of the public. It is important for anyone involved in bringing a product to the market, from the design process to the retail outlet that displays the finished product. Even if you follow all the rules, product liability insurance is a wise investment.

Product liability insurance is intended to help with the cost of compensating someone who is injured or suffers a loss due to an unsafe product that your business has supplied.

What is Product Liability Insurance?

Product liability insurance, also known as general liability is usually included as part of a public liability insurance policy. It is designed for professionals who supply products to their customers or to members of the public.

Product liability insurance protects against claims of personal injury or property damage caused by products sold or supplied through your business. It is designed to help protect your business by ensuring that if this happens, you don’t have to pay any legal or court costs.

Do I need this Insurance?

Product liability insurance is recommended for any business that supplies products. Even with products that appear entirely safe, there’s always the potential for something to go wrong – and accidents do happen. Claims of personal injury or property damage arising from product use (or product failure) can be incredibly expensive, and even if you’re not at fault, you may still incur considerable legal costs while defending yourself. See more here.

Did you know that product liability insurance is the essential cover for any business that sells or manufactured products? An important feature of it is the legal defense coverage.

Product liability insurance coverage

Product liability insurance covers the manufacturer’s or seller’s liability for bodily injury or property damage sustained by a third party due to a defect or malfunction of the product. The injured third party may be a buyer or user of the product or even a bystander.

Types of Claims

There are three basic types of product liability claims:

  • Manufacturing or Production Flaws Claims to allege that some phase of the production process created a defect in the final product that was unreasonably hazardous. For example, Steve purchases a table saw at a hardware store. Steve is injured when the blade guard flies off the saw. He sues the manufacturer, claiming that the guard was improperly installed when the saw was manufactured.
  • Design Defect Claims to allege that the design of the product is inherently unsafe. For example, Steve (in the previous example) sues the manufacturer on the basis that the saw was improperly designed. His lawsuit claims that the blade guard flew off the saw because of the guard’s faulty design. Read more here.

Product liability insurance is a member benefit specifically designed to provide insurance to protect businesses from claims brought against them from a product.

Benefits of Product Liability Insurance 

The world is fast becoming a global village. Today’s consumers can purchase anything from almost anywhere in the world. They are also becoming more aware of their rights, and are much quicker to exercise those rights in lawsuits against manufacturers, exporters, distributors, and retailers.

As companies expand into different regions, they must try to minimize their exposure to the product liability regulations in different countries, and particularly in North America. The best way to do this is with product liability insurance.


  • Can be purchased on a stand-alone basis
  • Covers legal expenses
  • Wide ACE network of over 50 countries, including the USA and Canada
  • Access to casualty risk engineering capabilities
  • Up to $50million of cover. Read full article here.

Your Business must have Product liability insurance

Product liability insurance is very important. More particularly, if you manufacture items that clearly may injure people, such as chemicals or construction equipment, product liability insurance is worth the cost. This insurance is voluntary for most businesses, but these policies could save you a lot of money in the long term. This may inspect on an annual basis and advised on how the management of their works may be improved to eliminate or reduce levels of risk.

In many countries, this insurance is a compulsory form of insurance for those at risk of being sued by third parties for negligence. Product liability insurance can provide protection from damages, claims and other liability arising out of the selling, distributing, manufacturing and design of products.  SGB Insurance Services, Inc. experts at Murrieta, are specialists in finding the best coverage terms at the absolute lowest cost for product manufacturers, distributors, and importers.

Of course I recommend utilizing the online quote tools found on SGB Insurance Services website or you may reach us here:

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