General Liability vs. Product Liability Insurance, and Why Your Clients Should Have Both

Commercial general liability insurance protects businesses against claims for general injuries to body or property. While the term “general” may make it seem like a broad blanket of coverage, it does not actually cover everything your clients may need to be protected. Therefore, many businesses add product liability to collide with their legal protection needs.

CGL Coverage and Limitations

Commercial general liability policies are commonly used to defend businesses for specific instances such as when someone slips and falls. Liability insurance covers personal injury and property damage that can occur as a result of someone being on the premises or coming into contact with the business. It also protects clients against claims for slander or false advertising, but that is all. If your client was sued cases such as malpractice claims, product defects, or any other similar instances, that coverage does not apply under general liability. As such, most businesses, simply have this as part of their business coverage package.

Product Liability Coverage

Those who make or sell products are responsible for what happens to them. Since these risks are not covered under a commercial general liability policy, your clients will have to add a separate policy for product liability to be adequately protected. If they are sued due to a product defect or because a product injures someone, they will need a product liability policy to cover them.

Timing Considerations

In addition to adding product liability under a commercial general liability insurance policy and choosing the right limits, make sure your clients are being cautious of policy timing. Such as the fact that a policy purchase may not be able to cover a defective product bought before the coverage was secured. Also, it is important that they are aware that it might not cover them if someone purchased a defective product in the last week of their policy but waits a month to file a suit. This is why it is crucial that your clients stay on top of their coverage needs and are very clear about their policy

About AmSuisse

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.