If you are the owner of a small business, you probably either already have or are in the market for product liability insurance for your company. Having product liability insurance is a necessity for almost every company that produces or manufactures a good. The type of coverage for your company may vary; a company that produces forklifts is probably going to be looking at steeper rates than a company that produces pillows. Still, once your business produces something, you can be held accountable in the event your product malfunctions. Product liability insurance will protect a business owner from charges that claim his or her product caused harm or is unsafe, and these often end with a large settlement for the accusers. Instead of bearing the entire weight of the claim on your own, product liability insurance will make the insurance company step in to help. Even limited liability corporations and sole proprietorships can be at risk of losing more than their initial investment. In the past, even an owner’s personal assets have been stripped in order to pay off his or her debt. Therefore, any small business owner is going to want to invest in some kind of product liability insurance.
Once you have acknowledged that your business needs some kind of product liability insurance, the next step is to find the right policy. Small businesses frequently have a tough time once they reach this step. This is because assessing and coming up with a good premium and coverage rate can be both difficult and time-consuming for major insurance companies.
If your first move was to speak with a broker, you were correct in doing so; however, you may be faced with the same problem as you were with the insurance company. Brokers are paid through a commission that is usually part of the premium you pay, and if your business is too small or does not have a promising future, the broker likely will not spend the time and resources to help you find a good plan. Instead, look into less experienced brokers who are still trying to build their reputation. The smaller brokers will probably be able to help and charge a smaller fee than some of the larger, more reputable ones.
Similarly, just because you are striking out with a major insurance company does not mean that all hope is lost. What you should do instead is look into some of the smaller and more specialized insurance companies. Not only will they be more likely to help you, they will be better equipped to analyze your business and provide you with an accurate quote.
And remember, just because you have found one insurance company that is willing to cover you, this does not mean that your search should end. Always shop around before you settle on a plan. Who knows, you may even be able to find a much better coverage plan at a lower cost!