Wholesalers Insurance New Jersey: Types of Product Liability Claims

Wholesalers Insurance New Jersey: The Three Types of Product Liability ClaimsWholesalers Insurance New Jersey: The Three Types of Product Liability Claims

As a wholesaler, it’s important to have the right type of New Jersey business insurance for your products that you sell. Product Liability Insurance protects your business from claims related to the manufacture or sale of products, food, medicines, or other goods to the public, and covers your liability for losses or injuries to the buyer, user, or bystander caused by the defect of the product.

The damages awarded in product liability claims include medical costs, compensatory damages, economic damages, and possible attorney’s fees, costs, and punitive damages. To know why your business needs this coverage, you should understand the three types of product liability claims and how to recognize them.

Manufacturing or Production Flaws: This claims that some part of the production process created an unreasonably unsafe defect in the resulting product. Examples of this type of defect include:

  • A swing set with a cracked chain
  • A tainted batch of cough syrup
  • A vehicle’s braking system not working correctly

Design Defect: This is a claim that the design of the product is inherently unsafe. Examples of this could include:

  • A type of sunglasses that fail to protect the eyes from UV rays
  • A line of electric blankets that can electrocute the user when turned on

Defective Warnings or Instructions: This is the claim that the product was not properly labeled or had insufficient warnings for the consumer to understand the risk. The McDonald’s “coffee case” is an infamous example of this type of claim.

As a wholesaler or distributor, many depend on you to deliver goods so they can meet their commitments. But a lot can happen along the way, and that’s why it’s critical to work with an insurance agency partner to create and secure a sound insurance program for you. Tri-State Insurance Agency provides a comprehensive business insurance portfolio for companies throughout Pennsylvania, northern New Jersey and New York. Give our professionals a call toll-free at 888.990.0526, or email us for a free consultation and quote.