Manufacturers and importers of building materials may perceive their risks as mainly operational; however, the consequences of potential liabilities can extend far beyond the factory floor or warehouse. Despite limited foot traffic on their premises, these firms are not immune to legal entanglements arising from product defects or completed operations.
These risks can result in costly lawsuits, financial losses, and reputational damage, emphasizing the importance of robust risk management strategies and comprehensive GL insurance coverage.
A well-tailored General Liability Insurance Program, with a focus on product liability and completed operations coverage, is indispensable in safeguarding these businesses against the potential pitfalls of litigation.
Protection Against Product Liability
The cornerstone of any general liability policy for manufacturers and importers of building materials is robust product liability coverage. Even with stringent quality control measures in place, the possibility of defective products slipping through the cracks cannot be entirely eradicated.
Whether it's a flaw in the design, manufacturing process, or inadequate warnings, product liability insurance shields businesses from the financial fallout of lawsuits stemming from bodily injury or property damage caused by their products.
Safeguarding Completed Operations
Importers and manufacturers aren't off the hook once their products leave the premises. This coverage extends protection against liabilities arising from work performed or products supplied, even after they have been delivered or installed. Whether it's a structural failure in a building due to substandard materials or a malfunction in an appliance manufactured by the company, completed operations coverage shields businesses from the potentially ruinous costs of legal defense, settlements, or judgments.