Product Liability Coverage for your Business
If your business sells a product that is defective it is important to understand that any entity in that product’s supply chain could face a lawsuit should the defective product cause physical harm or financial loss. Even though your business may be doing nothing wrong, by handling the product (or its components) the company may be exposed to legal action.
It is for this reason that many online webstores, including Amazon.com, are requiring that vendors above a certain annual revenue threshold obtain Commercial Goods Liability/Product Liability insurance to cover all goods and products they are selling. In the case of Amazon.com, any sellers with over US$10,000 in annual revenue are required to obtain CGL Insurance.