A product liability insurance proposal is a document which is proposed by the manufacturer in order to protect itself from any liability lawsuits as a result of any defect in any product which may have caused damage to the consumer. Liability lawsuits can be very expensive and companies may have to shell out huge amounts in order to compensate the consumers who have been injured due to damages in the product. By insuring itself against liability, the company can breathe a sigh of relief in case there is any problem later. Although products are thoroughly checked before they are put in the market for sale, sometimes in rare occasions there may be some defect but it is enough to cause a dent in the company’s image and revenues due to compensation. A product liability proposal thus helps a company.
Sample Product Liability Insurance Proposal:
Name of insured company: Cool It Fans Co
Address: 98 East End Drive, Waco
Phone number: 9302492
Website: www.cooitfans.com
Email ID: customercare@cooitfans.com
Year of starting business: 2000
Name of proposal: Product liability Insurance
Description of products: We manufacture ceiling and table fans of different sizes and designs
Purpose of proposal: To insure our products and protect ourselves from any liability lawsuits if any consumer is injured due to a defect in the product
Period of insurance: December 4, 2000 to December 4, 2020
Details of product liability proposal:
- We have ISO9001:2000 certification
- All our products come with a user manual with detailed instructions in both English and local regional languages and we also provide warnings that customers need to follow regarding installation ad usage