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Retail Stores and Product Liability Insurance

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Are you looking for retail insurance? Retail stores should carefully consider product liability insurance in addition to a business owners policy.

Product liability insurance protects a retail business against claims made from the sale of goods, products, medicines, or foods sold to the public. Product liability insurance covers the retail seller's liability for losses or injuries suffered as a result of purchasing a product from a buyer, user, or bystander.

It covers defective products or product malfunction. In some cases, it may also protect the seller from failure to warn. Sometimes, this coverage is found within a general liability policy for a business as products completed operations insurance. A good retail insurance package will include product liability.

A recent example of how product liability insurance works: the problem with tainted pet food manufactured in China. The pet food was then imported into Canada and then distributed to two United States locations which supplied the tainted pet food to Wal-Mart, which in turn sold it to customers.

A number of pets died, and a barrage of lawsuits began. The Chinese and Canadian entities were insulated from suits, and even if judgments were levied, claiming restitution would have been impossible.

The retail outlet, in this case, Wal-Mart, ended up facing numerous suits filed by unhappy cat owners. This is how product liability insurance can easily save a business from financial disaster.

Product liability insurance is a necessity for any size business which is distributing or selling products in the United States.

One lawsuit to a small mom and pop shop can result in devastation for the business. Examine your general liability insurance and determine if more coverage is needed to protect your retail store.