Product Liability

product liability invention inventor

product liability invention inventor

Despite Your Best Efforts, Sh#t Happens

We work hard to develop our ideas, create products often with the intention that they will be sold to happy customers and bring great benefits and joy to the world.

Sometimes, however, a products can bring trouble – injury, damage to property, personal upset etc.

It’s a scary thought, especially with the possibility of a lawsuit popping up.

Nobody wants that, but it can happen and it’s our job as entrepreneurs to be prepared for it.

The thought of someone injuring themselves with my Jar Handle product, had me worried. So I looked into what kind of insurance I could get to protect me in case someone had an incident with my product. That’s when I discovered Product Liability Insurance.

Product Liability Insurance (PLI)

It’s essentially Small Business Insurance and it’s something every entrepreneur should consider as part of their costs from the start.

You can get this insurance through most insurance providers and it’s best to get it in the same state or province as your business is registered.

It’s also important because retailers typically require this kind of insurance before they will sell your product in their stores. It makes sense because they have a lot at stake if something goes wrong with your product.

It covers you as well as your retailers

This insurance typically guards against

  • Manufacturing Defects
  • Design Defects
  • Defective Warnings, Instructions or disclaimers

You can also get this insurance through your fulfillment company.

The insurance company will want to know about your product and it’s packaging, instructions etc. so start thinking about aspects of Product Safety and Product Liability early on in your development process and how you can reduce risks as well as plan for user errors which, despite our best efforts in design, are all-too-common!

In The Inventors School, we focus a lot on Good Design and Product Safety is definitely a part of that.

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