Firearms Insurance Agent Blog

What Determines Your Product Liability Insurance Package Price?

If you own a company that produces products and sells them to the public, you should consider investing in product liability insurance. It will protect you in the event that your product causes bodily injury or property damage to someone who decides to file a lawsuit against you later. Before you apply for product liability insurance, check out several of the factors that will determine how much you’ll have to pay for it.

What type of business do you own?

There are some industries that are inherently more risky than others. For example, if you own a company that sells fabric, you’re probably not going to be required to pay as much for product liability as you would have to if you own a company that sells fireworks. An insurance company will assess the type of business you own before giving you a quote for a coverage plan.

How valuable is your company?

Larger companies are usually more susceptible to lawsuits than smaller ones. Simply put, many people assume larger companies have more money than smaller ones, so they’re quicker to file lawsuits against them. Additionally, a smaller company could easily just file for bankruptcy when a lawsuit is filed against them to avoid paying out a large amount of money while a larger company would be unlikely to go that route. Therefore, the size of your company will play a role in your product liability insurance rates.

Have you filed insurance claims in the past?

Companies that have filed insurance claims before are going to be more likely to have higher insurance rates than those that haven’t had to use their product liability insurance in the past. If your company has made a claim or multiple claims before, you can probably expect to pay more for insurance.

Associated Services in Insurance works hard to find the best product liability insurance rates for firearms and ammunition manufacturers, small and large gun shops, hunting guides and outfitters, and more. Despite the risks associated with these industries, we can set your company up with a great rate when you agree to work with us. Call us at 816-229-4450 today to get your rate.