As a company that designs and manufactures products, your goal is to provide your customers with goods that meet a particular need. You know that quality, performance, and client satisfaction are some of the main principles that guide your operations. While you may have rigorous processes for quality control and customer service, sometimes a product design misses the mark. Mistakes, omissions, and perceptions of negligence can leave a third party dissatisfied enough to file a claim against you. Is your business covered for such an instance?
Understanding Professional Liability
Also known as errors and omissions coverage, professional liability can protect a business from third-party claims of negligence. It is essential insurance for product design firms. Besides firms directly responsible for products, professional liability coverage is strongly recommended for the following businesses:
- Firms responsible for integrating a product into a business process
- Companies that manufacture and distribute components for products
- Organizations that recommend the use of products to meet clients’ needs
Protecting Your Business
Product design businesses need to be able to stand behind their deliverables. Client satisfaction is in the eye of the beholder. Even without errors and omissions, companies like yours need to protect themselves from the financial harm that can come from a lawsuit from a dissatisfied customer.
