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ManufacturerCompleted products coverage is a common type of business insurance protection. Most business insurance policies offer it under the general liability policy. A completed product is any type of item sold or given to a person to use. It can often include services a person obtains away from the location of the business.

Liability risks extend beyond your sales floor. This type of insurance minimizes those risks.

When Does Completed Products Coverage Apply?

A company sells a product. A consumer buys that product. He or she takes it home and uses it. The product fails or causes some type of harm or loss to the consumer. The business may be liable for those losses. These losses may include physical injuries. It may also include financial loss to the home or other structure. Most of the time, it applies only to monetary losses. This may include medical bills, lost time at work, or damage to the property requiring repair.

A covered product under this plan applies to almost any item produced by or sold by your company. It may be something you give away, too. For example, if you give away a t-shirt that causes someone an allergic reaction, your company may be liable.

How Can You Minimize These Claims?

Every company needs business insurance with general liability coverage. Most often, product coverage is a part of that plan. However, companies should take any step possible to reduce risks associated with their products and services. There are some steps your company can take to minimize this type of business insurance claim.

  • Provide warning hazards if there are safety risks to the use of the product.
  • Meet with your attorney to ensure all standards and warnings meet the requirements of all local, state, and federal guidelines.
  • Be sure to provide adequate directions on how to use the product properly. Be specific about potential risks if the user fails to follow those directions.
  • Provide ample training to ensure employees communicate risks.
  • Be sure your employees and manufacturers craft products in a safe manner.
  • Require inspection and testing of your products to ensure quality.

Discuss your risks with your Houston business insurance agent. Find out if you have adequate general liability insurance in this area. If not, consider improving the amount of coverage you have. Doing so can help minimize your financial loss and improve your business's ability to maintain a low-risk policy. With the right care, you can ensure that your customer satisfaction is sufficient.

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