If your business manufactures, distributes, or sells products, you could be sued if someone claims your product caused injury, illness, or property damage. Even with high-quality control, defects can happen—and one lawsuit could cost millions. That’s why businesses need Product Liability Insurance to protect against legal claims.

Why Colorado Businesses Need Product Liability Insurance

Product liability claims are increasing, with businesses facing lawsuits for:

📦 Defective Designs – If a product’s design makes it inherently dangerous.
⚙️ Manufacturing Defects – If an error occurs during production, making the product unsafe.
📢 Failure to Warn – If the product lacks proper safety instructions.

Even if a business isn’t at fault, defending a product liability lawsuit can be incredibly expensive.

What Does Product Liability Insurance Cover?

✅ Legal Defense Fees – Pays for attorneys and court costs.
✅ Settlements & Judgments – Covers damages awarded to the injured party.
✅ Medical Costs – Pays for injuries caused by a defective product.
✅ Compensation for Property Damage – Covers damage caused by your product.

Who Needs Product Liability Insurance?

🔹 Manufacturers – Any business producing consumer goods.
🔹 Retailers & Distributors – Even if you don’t make the product, you could still be sued.
🔹 E-commerce Stores – Selling online doesn’t protect you from product liability claims.

How to Reduce Product Liability Risks

✔ Use Warning Labels & Instructions – Provide clear safety guidelines.
✔ Test & Inspect Products Regularly – Catch defects before they reach customers.
✔ Track & Recall Defective Products – Have a recall plan in place if needed.

Final Thoughts

One defective product could lead to a lawsuit that destroys your business. Product Liability Insurance is a must-have for any company that manufactures, sells, or distributes products. Protect your business before a claim happens.