It is no secret that business and commerce have accompanying hazards. If you manufacture a product or perform a service your actions can cause harm to a customer. And by law, manufacturers, suppliers, distributers and retailers and contractors are held responsible. Therefore, it is important to protect the whole line of people held responsible. That is why we`re here to help you, your business and the products and services you make or supply, be protected by Products and Completed Operations insurance.
Points and questions to consider:
- How many of your products will be released to the consumer market?
- What are the products made of?
- How long is the product expected to last?
- What does the manufacturer affirm about the product? Either in writing or demonstration
- What was your service supposed to accomplish?
- What about the work you do remains hazardous after you finish your work?
Products and Completed Operations liability insurance protects against bodily injury and property damage done by your product or work. It should not be confused with a warranty or guarantee. Although it is no one`s favorite thing to think about the unpredictable situations and hazards that can be caused by their work, it is very important just expect the unexpected. Here at Hortica, we understand that no manufacturing company is flawless, and therefore, we are here to protect you and your hard work. And don’t be fooled by the fact that you are two or three steps removed from the manufacturer. All stops along the chain of commerce can be subject to suit in case of an injury. Be particularly careful of imported products. If there is no importer in the U.S. with products liability, you might be at the front line of the law suit.
There are three common claims that a manufacturer can be faced with:
- Manufacturing or production or production flaws: in some part of the production, a product was not made correctly and has an unreasonably unsafe defect.
For example, process is slightly off leaving a sharp edge that cuts people when they handle the product.
- Design defect: flaw in the design of a product manufactured, making it unsafe. Example a pre-lit Christmas Tree has bad wire causing fires when plugged in.
- Defective warnings or instructions: product is not properly labeled or had inadequate warning notices for the customer to follow
For example, aerosol bug bomb doesn’t make it clear not to use near open flame such as pilot light.
Completed operations losses usually take the form of damage to property or persons that happens after you have left the premise. Examples are as follows:
You have finished plowing a parking lot. Someone walking from their car to the store slips and falls and your “quality of the job” is blamed for their injury.
You plant a tree and the roots invade nearby sewer pipe causing back-ups in the system.
No matter what the case, we want to make sure both you and your company are safe if you are faced with the chance of a possible lawsuit.
- Medical costs
- Compensatory damages
- Economic damages
- Attorney fees and court costs, in most cases
The manufacturing world is colossal and the number of products that are made by many different companies is endless. That is why it is crucial to pick an insurance plan that fits the demand of a company in need, no matter the unexpected chances of a lawsuit.
Products manufactured as perfect candidates:
- Pesticides and herbicides
- Toys, ornaments, anything attractive to children. Even lawn ornaments, flower arrangements etc.
Even products that have been discontinued are subject to suits for damage.
No one intends on making products which injure or cause damage. Care in production, quality control and constant awareness of government requirements are necessary steps for manufacturers. If you are a service contractor, check your contracts, carefully choose contracts you are asked to sign. Properly train your workers. Conduct training and learn from incidents so they don’t happen again. As an insurance company, we understand that accidents happen. But as Hortica Insurance, we will partner with you to find the best policy for protecting you when a manufacturing lawsuit arises.