Don’t Let Your Products Damage Your Bottom Line

8 years ago · by Shawna Kreis · 0 comments

Don’t Let Your Products Damage Your Bottom Line

Product Liability Insurance helps protect your company from damages for losses related to manufacturing or selling products or other goods.

These claims can, and do, put businesses out of business – just ask the officers of any asbestos manufacturer.

Companies are vulnerable to three types of products claims

Manufacturing or production flaws that create an unsafe defect in the product. For an example, just recall the recent claims against Chinese manufacturers for using dangerous chemicals in their products.
Design defects that make the product inherently unsafe. (The series of lawsuits against Toyota vehicles for defective acceleration controls during the past two years comes to mind.)
Inadequate warnings or instructions, such as failing to label a product properly or advise consumers about potential risks. A famous example is the McDonald’s “hot coffee case.”

Damages can include medical costs, compensatory damages, economic damages, and (in some instances) attorney fees and costs, as well as any punitive damages.

Some sellers and retailers choose not to buy Product Liability Insurance because they don’t actually “manufacture” anything. However, most states follow the “stream of commerce” model of liability, meaning that if your company sells a product, you can be held liable for damages to the end user.

“Business Owners” and Commercial General Liability policies usually include some type of Product Liability Coverage (Sometimes known as Product/Completed Operations Insurance).

Premiums are based upon the type of product and sales volume. If you try to reduce premiums by underreporting sales or insuring only a percentage of your sales, you’ll probably face a hefty “underinsurance” penalty. Make sure to identify your products properly, too. For example; if you supply stepstools, you don’t want them categorized as ladders, which have a higher premium because of their greater risk potential.

For more information, feel free to get in touch with our Business Insurance professionals.

8 years ago · by Shawna Kreis · 0 comments

Auto Insurance: Saving $$ In Your Golden Years

Your Auto insurance rates are based on a variety of factors such as your driving record, mileage, the car you drive and your age.

Rates are highest for drivers in their teens and early 20, tend to fall for those aged 30 to 60-something, and then start climbing again around age 70. Although drivers in this age range tend to drive less and are more mature, their vision and reflexes are declining. They’re also more likely to be injured in an accident than their younger counterparts, and to suffer more severely because they’re physically weaker. Also. They often drive smaller cars, which are more vulnerable to damage.

Here are five ways that senior drivers can keep their Auto insurance rates affordable. :

Update your mileage. You can get a discount of 5% to 10% if you no longer commute or drive long distances.
Use a telematics device. A usage-based or pay-as-you-go Auto insurance program can reduce premiums by 5% to as much as 40%.
Take a class. Most states require Auto insurers to offer “mature drivers” (who can be as young as 55) a discount of 5% to 15% for completing an accident-prevention course.
Exclude a driver. In some states, you might be able to drop coverage on a driver who no longer gets behind the wheel.
Make your car safer. Some insurance companies offer discounts for anti-theft devices, airbags and anti-lock brakes.

Bear in mind that drivers can use some of these methods at any age and save on Auto insurance by raising their deductible or reducing coverage.

To make sure you get the protection you need at a cost you can afford, just give us a call.