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What You Need to Know About Consumer Goods
Reach insurers without involving third parties
Retailers, distributors, manufacturers, and other suppliers of consumer goods are increasingly required to fully indemnify their customers for all product recall costs and expenses. We offer product recall insurance to protect the supplier and their customer.
We offer you direct access to insurers and help you tailor policy language and coverage terms. Direct access reduces overhead costs paid by insurers and enables them to afford to charge lower prices. We will work with you and insurers to design the policy to fit your needs and those of your customers.
Frequently Asked Questions
Do you need product liability insurance?
Nearly any business that sells any product needs a product liability insurance policy with First Independent Agency in Metro Detroit. Think of it this way:
What is product liability insurance?
Product liability insurance sounds very similar to general liability insurance, but they are not the same. Where general liability protects you if someone is injured because of your business's operations, product liability protects your business if your product makes a consumer ill. Product liability insurance helps cover medical bills and recovery costs for the affected consumer and legal costs if your business faces litigation due to your product.
What will a product liability policy cover?
Product liability policies usually cover a few types of losses: Property damage coverage: If you manufacture grills, and one explodes and causes a house fire, then this coverage can pay for the property owner's recovery. Bodily injury coverage: If a restaurant serves someone a salad, which subsequently makes them sick, then coverage can help pay this person's medical bills and other recovery costs. Legal assistance: This coverage can apply to both property and bodily injury claims. If someone sues you over their damage, your policy might pay court fees, settlements and other costs.
Is product liability insurance included in general liability policies?
In many cases, you can get product liability insurance as part of your commercial general liability insurance policy. CGL policies apply to numerous injury and property damage risks associated with the business, not just product liability coverage. Often, you'll be able to get the general liability coverage as part of your business owners policy (BOP) or commercial policy package (CPP).
What is the cost of product liability insurance?
Your policy's premiums will vary considerably, based on numerous risk factors. However, an insurance premium is always going to be less costly than a product liability lawsuit for a company that has no coverage. That's why you should always carry this policy, no matter how big or small your business.
What does product recall insurance cover?
As the name implies, product recall insurance will cover expenses associated with recalling a product. Expenses can include customer notification, shipping costs, and safe disposal costs. Product recall insurance may not seem vital at first but remember you don't always have a choice when it comes to recalling a product. If one of your ingredients is recalled by a regulatory agency or the government, you need to issue a recall for your own product.
Are you protected against all medical recall costs?
Product recall is one of the leading risk exposures to pharmaceutical and nutraceutical companies. It is of critical importance to understand and correctly insure these risks. Our product recall policies are designed to increase financial protection to these industries. Our Solution The financial impact of a product recall in the pharmaceutical and nutraceutical industries can be significant. Our solutions are designed to protect your company and your bottom line. Our solutions include: Insurance coverage designed to better protect you and your supply chain vendors. Timely and actionable intelligence and support services through our strategic partner network. Expedited claim payments, legal advice for contractual risk transfer, quality control, and other services.
What is product liability coverage?
Every manufacturer, in every industry, makes products that could run the risks of harming others.
Are You Misinsured?
The industry transformations Food Retail is undergoing have brought about significant operational changes: new C-Suite appointments, unfamiliar supply chains, increasing complexity and novel customer services like grocerants, Ecommerce and meal kits all of which present distinctively different risks and exposures.
Do you understand subtle coverage differences of different insurers?
While automobile manufacturers require auto parts suppliers to have product recall insurance, not all policies are the same. There are subtle yet significant coverage differences between competing insurers in this space, and these differences can have a major impact on your business in the event of a recall.