Posted on May 17, 2014

Iowa Businesses Can't Afford To Ignore Product Liability Insurance

Iowa product liability insurance

Product liability insurance is the only solution to protecting Iowa businesses when their products injure or make a customer sick. Even if a claim is false, just the expense of going through a lawsuit to prove it can be very costly. Product liability insurance provides business owners with the necessary protection to pay when the company is held legally liable for an injury or illness. It includes coverage for court settlements or awards and legal defense fees.

Examples of a product liability include a recent event when an Iowan citizen filed a claim against Jimmy John's sandwich restaurant for foodborne illness caused by tainted sprouts. The woman's claim seeks medical expense payments in addition to damages from pain and suffering. She suffered from E. coli poisoning after eating a sandwich with the sprouts on them. Twelve other people in other states also experience E. coli from eating sprouts at the restaurant.

Claims such as those made by customers frequenting the restaurant illustrate why product liability insurance is so important for Iowa businesses. Even though the restaurant might not have grown the sprouts themselves, they used them in the food they served to customers, and if found liable, their insurance will have to pay out for the lawsuit claims.

Product liability coverage protects companies whether they create a product or merely distribute or sell it. Choosing the right amount of coverage is important to fully protect business assets so speak with a licensed insurance professional to obtain help in determining the necessary business insurance policy limits.

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