A manufacturer liability insurance plays an indispensable role by shielding you against lawsuits which may be filed against you by your customer who is not satisfied with your product. This may happen due to design defects, manufacturing flaws, or when the government orders the product recall. As such situations can result into heavy losses, a manufacturer liability insurance offers the financial coverage at this point. This insurance policy also helps if your product has caused bodily or property damages to any person or product.
Considering the important role which a manufacturer liability insurance plays, it is essential to choose the best policy. Here are some tips that should be considered while buying the manufacturer liability insurance:
1.Ensure the policy covers all your business risks
Most manufacturer’s liability insurance policies are tailored to suit the needs of different types of business, however, it is still necessary to ensure it is adequate to support your business activities. For instance, there may be some exclusions due to which you may not be fully covered for all the risks that your business usually faces. Just as there are various insurance companies which are offering the policies in the country, there are variations between insurers as well. So, it is necessary to carefully read the insurance policy document, check the policy wordings and exclusions in detail.
You can ask the following questions to ensure your policy is sufficient:
- Will the insurance policy cover all business-related activities? For instance, will it cover third-party liability as well?
- What are the inclusions and exclusions of the policy?
- And finally, who is covered under the policy?
2.Make sure the cover level is sufficient for your policy
Choosing the right level of cover depends on the nature and type of your business. For instance, an auto manufacturing unit dealing in spare parts of all the vehicles presents an endless list of the events in which any incident can occur, as compared to an auto manufacturer who deals only in two-wheelers spare parts.
Therefore, it is necessary to carefully consider the potential risks which your business may have to face. As tempting it may be to buy the lower insurance cover and get easy premium rates, it may not offer you sufficient cover and may turn out to be costly when you would have to shell out money from your pocket at the time of claim.
Also read: Say yes to carrier legal liability insurance
3.Curtail your business risk
Even after following all safety regulations, a business can incur losses. However, by carefully assessing your business and implementing safety regulations, it is feasible to potentially curtail your insurance premium over the period of time. Do all what you can do to improve the safety of your business, such as conducting training for your employees, installing burglar alarms, learning more about your industry, etc. All these initiatives can reduce the potential for accidents to happen and also lower your insurance premiums.
4.Get Multiple manufacturer liability insurance quotes
Of course, all business owners look for ways to save some money, however, the cheapest manufacturer liability insurance is not always the right option. Take your time to assess all the potential business risks and choose the right policy. At the end of the day, a cheaper manufacturer liability insurance policy may not give you extensive cover at the time of claim.
You can obtain the multiple policy quotes which you can compare to find the best policy. Here SecureNow, a leading corporate insurance advisor can help you. By entering a few basic details about your business requirements, the experts at SecureNow can generate policy quotes for you which you can easily compare to find the best policy for you. Indeed, it is the best way to save your time and money.
There is a lot more which is needed to consider while choosing the manufacturer liability insurance policy, and the above tips are a good starting point to getting the right kind of policy. However, as the saying goes, “you reap what you sow”, so investing the time to carefully consider the risks that your business may face along with researching on the available options will ensure you get the best manufacturer liability insurance policy.