Strict Liability Insurance

Strict Liability Insurance Strict liability is the responsibility that small business owners have for damages or injuries their products cause, even if they did nothing wrong. For example: -Products that cause harm due to inherent defects (product liability). -Injuries caused by dangerous animals. -Environmental damage caused by certain activities. While there's no single "strict liability insurance" policy, some existing insurance options might provide coverage in situations involving strict liability, depending on the specific policy wording and circumstances. Strict liability is the responsibility that manufacturers, wholesalers, distributors, or retailers have for damages or injuries in cases where there was no fault or negligence. Strict liability normally applies in three situations: when dangerous animals are involved, when someone engages in highly dangerous activities, or when a defective product hurts someone or damages property. How does strict liability affect small business owners? Strict product liability relaxes the burden of proof a plaintiff must meet in pursuing legal action against a small business. As a result, it makes running a business much riskier than under standard liability rules. In practice, this means businesses that design, manufacture, wholesale, or sell products need robust liability insurance to protect them in case they’re sued under strict liability rules. Standard general liability insurance provides coverage for product liability lawsuits under the products and completed operations aggregate limit. However, if your firm manufactures or sells high-risk products, you may want to boost your protection by adding a product liability endorsement to your general liability policy. In conclusion, strict liability can pose a significant financial risk for businesses. While there's no single "strict liability insurance" policy, some existing coverages like general liability or product liability insurance might offer protection depending on the specific situation. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful