What is Product Liability Insurance?

As the owner of a business, you are liable for any products you manufacture or sell—and if somebody is hurt as a result of using the product, you may be at fault for the incident.

When you ask for coverage from our agency, we will determine the likelihood of a lawsuit being brought against you as a result of one of your products being used. Our experts can identify the risks associated with your products or services and appropriately scale a policy to cover those risks. We can also offer advice on how to make your products less prone to risk. This may involve modifying your product, packaging it differently, or changing any instructions and warnings included with the product. When done well, these precautions can help reduce the company's liability and stop customers from using the product in an unsafe way.

Do I need Product Liability Insurance?

If your company manufactures or sells any kind of product, it is strongly recommended that you have some form of liability coverage. Even products that are widely regarded as 'safe' can malfunction in a way that causes harm to the user, and defending against a lawsuit is usually expensive enough that many companies (and claimants) prefer to simply settle out of court. Product liability insurance can reimburse you for expenses (including defense costs and settlements) that occurred during this process.

Product liability cases that go to court are among the most expensive forms of personal injury cases, and as of 2013 these cases had an average payout of more than $6 million. All companies that obtain this type of coverage are encouraged to have a policy limit higher than the median payout—anything less makes it likely that your company will suffer significant losses if a jury decides against you.

Don't forget to talk to your agent on a regular basis as your business continues to grow. Larger businesses often face larger risks than smaller ones (including, among other things, increased exposure as a result of having more customers who could potentially file a lawsuit). A plan that suffices for a small company may not be enough to protect a large one.

What does Product Liability Insurance Cover?

Product liability insurance mainly covers the legal obligations of a company. This may include payments like:

  • Court fees
  • Legal defense costs
  • Personal injury awards
  • Out-of-court settlements
  • Miscellaneous fees that may occur during any of the above

If you feel any of these forms of coverage are missing from your policy, or if you are starting a business and need product liability coverage, speak to a Gordon Insurance agent or request a quote today.

 

1. Ross, Kenneth. "The Role of Product Instructions in Product Liability Prevention." In Compliance. April 30, 2015. Accessed April 18, 2016. http://incompliancemag.com/article/the-role-of-product-instructions-in-product-liability-prevention/.

2. "Settle Your Personal Injury Claim." AllLaw.com. Accessed April 18, 2016. http://www.alllaw.com/resources/personal-injury/settle-your-personal-injury-claim.

3. "Product Liability." III. Accessed April 18, 2016. http://www.iii.org/fact-statistic/product-liability.

Gordon Insurance

20 El Camino Real

Redwood City, CA 94062

Main office: 650-654-5555
Toll free: 877-877-7755
Fax: 650-654-5550

Office Hours:

Mon: 8:00 AM - 5:00 PM
Tues: 8:00 AM - 5:00 PM
Wed: 8:00 AM - 5:00 PM
Thurs: 8:00 AM - 5:00 PM
Fri: 8:00 AM - 5:00 PM
Sat: Closed
Sun: Closed

Our Providers

Testimonials

For over 20 years Dave Gordon and Associates have taken care of all my insurance needs. This includes insurance coverage on multiple types of commercial and residential properties some of which had complex insurance requirements. They have NEVER failed me. The staff is fantastic, assuming the role of liaison between banks, investors, and me to always provide required documents and the proper policy types at the best price without delay or hesitation. I can always count on Dave Gordon and Associates to resolve any issues and/or return my call or email within less than 24 hours! Dave Gordon and Associates is a testimonial to the professional, courteous, efficient, and knowledgeable service that should always be provided to clients . I have no reservations referring Dave Gordon as your "go to" Broker for all your insurance needs.
Marv Remmich, Realtor & Property Manger, Property Owner, Developer
I started with Dave Gordon in 1985, and have never looked back. He and his staff have been on the ball, always getting back to me in a day. I have my retail store in San Francisco and an apartment house with him. Every month I get a flyer in the mail, telling me about the great service and low price offered by others, and when I have followed up, the price was always higher and the answers slow to get. When I wanted to raise the coverage for "code upgrade" on the apartment house, to $250K he switched me to another carrier that included $500K in coverage at a cost of $120. a year more. That is looking out for the Client. His outfit is the best.
Ed Regan Business and Property Owner
I have 4 properties, an auto and a $5 Million umbrella insurance policy that I had been doing business with another insurance co. When it came time to renew these policies, for the first time I decided to compare the coverages and the premium rates being charged by a very large & well-known nation wide insurance company. I was absolutely flabbergasted when I made my comparison sheet with Gordon Insurance Co. & the other 4 insurance company quotes. Gordon was lower than all 4 companies and I also was very impressed by the way the owner David & his staff treated me during this process. They are very attentive, detailed, courteous & say what they mean, & mean what they say & get the job done. I am going on 3 years in doing business with Gordon Ins. Co. & do not plan on switching companies, since I have been so satisfied with their service across the board in each department. I strongly recommend Gordon Insurance to you & give them my 5 STAR RATING! Suggestion: Gather 3-5 insurance quotes from different companies. Then call Gordon Ins. Co. and they will give you their quotes. In comparing these quotes, you will be amazed at how reasonable Gordon's rates are! They use top grade insurance companies - not unknown, fly-by-night companies that do not stand behind their insured customers! Like me, you also will be very satisfied with Gordon's rates & service for years to come! Try them - You will like them also!!
Peter Kelsch Investment Property Owner San Francisco
I first met Dave Gordon about 20 years ago (!) when I had a retail printing shop near his insurance office. He needed printing for his business and I needed insurance for my business, my home and my cars. I have been doing business with Dave and his company ever since, and I have never had any reason to even consider switching my insurance business to anyone else. Dave and his staff are knowledgeable about their business (and they do a great job of staying informed about their industry, which is constantly changing) and they are always super responsive to any of my inquiries and needs. Dave's company is one that I can always count on. Try them and I don't think you will be disappointed. Gordon Insurance delivers!
Carl Gosline TigerType Print & Design
Over the years, I have found David Gordon to be a professional who knows his business thoroughly and has been able to provide competitive insurance products for my commercial properties as well as my home and cars. In addition, Travelers Insurance came through to exceed my expectations of how an insurance company responds to claims after a substantial water damage claim at my home last year. I wouldn't hesitate to recommend Gordon Insurance to my friends and family.
F. William Mainzer Business and property owner
As HOA President for Bay Ridge Condominiums, I can confirm that we have been a satisfied client of Gordon Associates Insurance Services since 10/12/2002. I have had the pleasure of working with most of the staff and have found them to be dependable, hard-working and dedicated to providing me with the service and products that suit our association's needs. I'm happy to recommend Gordon Insurance for your insurance needs and would be open to providing further information if requested.
Kent R. Clark, president, Bay Ridge Condominiums, HOA
In addition, Travelers Insurance came through to exceed my expectations of how an insurance company responds to claims after a substantial water damage claim at my home last year. I wouldn't hesitate to recommend Gordon Insurance to my friends and family.”
F. William Mainzer, Business and property owner
I first met Dave Gordon about 20 years ago (!) when I had a retail printing shop near his insurance office. He needed printing for his business and I needed insurance for my business, my home and my cars. I have been doing business with Dave and his company ever since, and I have never had any reason to even consider switching my insurance business to anyone else. Dave and his staff are knowledgeable about their business (and they do a great job of staying informed about their industry, which is constantly changing) and they are always super responsive to any of my inquiries and needs. Dave's company is one that I can always count on. Try them and I don't think you will be disappointed. Gordon Insurance delivers!
Carl Gosline, TigerType Print & Design
I just want to say I have heard very good things about and your ethics in business. I was probably in the worst phase of my life when dealing with my insurance items with you and didn't care about much at the time. I feel better now and just want to thank you and appreciate your support. I have known you for a long time as a friend and I do not like business transactions in the first place. Hearing what I hear from various people is so nice and I feel you need to know that you are very well respected out there.
Julie G
I started with Dave Gordon in 1985, and have never looked back. He and his staff have been on the ball, always getting back to me in a day. I have my retail store in San Francisco and an apartment house with him. Every month I get a flyer in the mail, telling me about the great service and low price offered by others, and when I have followed up, the price was always higher and the answers slow to get. When I wanted to raise the coverage for "code upgrade" on the apartment house, to $250K he switched me to another carrier that included $500K in coverage at a cost of $120. a year more. That is looking out for the Client. His outfit is the best.
Ed Regan, Business and Property Owner