Do resellers need product liability insurance?

If you sell, make, or distribute products, you likely need this policy. If that product allegedly hurts someone or damages their property, product liability coverage will help pay your legal fees, judgment, or settlement. Anyone can sue over damage from a product, even if they didn’t buy it or use it.

Are resellers liable?

When a retailer advertises an item for sale, it is implied that they ensure the product is safe and suitable for use. Even though a retailer may not have manufactured or distributed a defective product, they can be held liable for any injuries or losses caused by a product they sold.

Are retailers responsible for product liability?

The majority of states recognize that in product liability cases “there are three potentially liable parties: the manufacturer, the wholesale distributor and the retailer of the allegedly defective product.” See generally West v.

Who in the supply chain can be held liable in a product liability case?

If a consumer, user or bystander gets injured by a product that is defective or unreasonably dangerous, the manufacturer or anyone else in the supply chain can be held responsible for that injury. Product liability lawsuits brought by individual consumers or groups of consumers can become costly and lengthy.

Who needs Products Liability?

Do I need it? You should consider product liability insurance if your business designs, manufactures or supplies a physical product that is sold or given away for free. Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product.

What does product liability insurance protect a business against?

Product liability insurance is designed for businesses who are involved in the production, supply of sale of products to members of the public. It helps protect against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business’s product.

Can you sue a reseller?

Yes, you may be able to sue certain large online retailers, but you are bound by the terms of their online user agreement. Those agreements vary substantially from site to site. At least one allows you to freely sue, but only in a particular county of a particular state.

How is the law of product liability applied to retailers?

Even though a retailer did not manufacture or distribute the product, it can be liable for injuries or losses arising from a defective product. Product liability laws allow consumers to recover damages from a number of parties when injured by the use of a defective product.

Who is liable manufacturer or seller?

Responsibility generally lies with the producer of the product rather than supplier. That might be: the manufacturer (or the producer in the case of raw materials)

What does a Products Liability policy cover?

Product liability insurance helps protect your business from claims that a product you made or sold caused bodily injury or property damage to someone else’s belongings. An insurance company may offer this coverage as a standalone policy, but we include it as part of your general liability insurance.

Is it a legal requirement to have product liability insurance?

While product liability insurance isn’t a legal requirement, you may find that manufacturers, suppliers, distributors or retailers you work with will require you to have it. On top of that, if you are found liable for injury, damage or death caused by one of your products, you can be sued.

What is an example of Products Liability?

So, for example, if your vehicle veered off the roadway because of a faulty steering, you would have a product liability claim only if you can show evidence that your accident and resulting injuries were caused by the steering defect, not because of a mistake you made.

Is product liability insurance a claims made?

Product liability insurance only covers claims made by external parties, not those made by your own employees. If you sell or supply products to customers, it is important to protect your business against claims that could arise from these products.

Is it legal to sell someone else’s product?

Generally, it’s not illegal to resell an item that you have legitimately purchased. Once you have purchased something at retail it is yours to do with as you choose. Manufacturers tend to have little or no control over a product past the first customer they sell to.

Can I take my business partner to court?

You can take the matter to court if your partner will not sell or negotiate and you wish to remain in the business. In this case, the court will decide the outcome, and one or both parties may be forced to sell.