As a business owner, you may find yourself looking at multiple types of insurance policies just to cover your company from damages and losses. One of these types of insurance is general product liability insurance. This type of insurance does not cover the people in your building or the building itself, but rather the product you create or sell after it has left your building.


Even if your company does not directly manufacture the product that you are selling, if your company name is on the package you are responsible for any damages. The best way to protect you from these types of claims and lawsuits is to purchase product liability insurance. The premiums are based on the types of products you offer. Products that would need product liability insurance could be clothing, building materials or electronic devices. the insurance will then pay for damages such as property loss or damage, injury or death. If you were to attempt to pay for these damages out of pocket, you could lose your business especially if the case went to court.

Risk Based Premiums

The rates for general product liability insurance are based on the type of product your company manufactures or sells. The premiums for clothing items will be less than the premium for an electronic item due to the risk of damage being lower. This does not mean that you should not purchase coverage for these lower risk items as the risk is still there. Another factor in calculating your premium will be the number of each product sold and manufactured as this will determine how likely a claim is to occur. Once you have purchased the coverage for your product, it is effective immediately making your company safe from loss due to damages claims.


One of the easiest ways to save money when it come to insurance for your business is to get all of your policies through one central company. For example many companies may off product liability insurance as a rider on your general liability insurance. This can cut the cost of each premium simply by purchasing both. If your company provides company cars, you can place the auto policy with the same company thereby again lowering the premiums you will pay. This works with almost any type of insurance your business may need and can save you thousands of dollars depending on how many policies you choose to take out.