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3 IMPORTANT REASONS WHY PRODUCT LIABILITY INSURANCE IS A GOOD IDEA FOR MOST SOUTH AFRICAN BUSINESSES

When it comes to Insurance, there are certain policies designed for Personal Insurance as well as policies designed for Business Insurance that are recommended. In your personal life it is wise to have health insurance, life insurance and liability insurance so that in the event of a tragedy, you will be covered. The same applies to your business. There are different types of insurance to cover the many things which can, and often do go wrong with many businesses.

One of the most important types of coverage a business can have is Product Liability Insurance, which covers the business owner in many ways.

Let’s look at three very good reasons why you’d want to have this coverage.

  1. Product Liability Insurance covers the business from costly reimbursements. A business owner may be held accountable for injury or death from a product which had a design or manufacturing flaw. In this case, it really makes no difference if your company made the item or not, you may be held personally liable if you don’t have the proper coverage.
  2. Your regular Liability Insurance may not cover all Liabilities. Not only could you be looking at medical costs, you could also be facing attorney’s fees and punitive damages in some situations. These can add up to such a high sum and you could find yourself out of business. A separate Product Liability Insurance policy is a good way to cover all your bases, making sure you know that you’re actually covered in the event of a claim made against you.
  3. Affordable insurance is a reality. Many business owners don’t shield themselves properly with the excuse of insurance being too high. Actually, if you weigh the cost of insurance against the cost of losing your business, it becomes clear just how important Insurance really is. Insurance rates can be high for businesses in South Africa, but you can find relatively good deals with Insurers by shopping around.

Ask any business person and they will tell you that there are certain risks you must assume when running a business. You can help minimize your risks by being properly insured, and that means having a Product Liability Insurance policy with adequate protection. 

 

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