| SolveYourProblem
eLearning Series:
Your Most Popular Insurance Questions
Answers For Health and Home
Insurance
( 50 articles
in this series )
Products and
Completed Coverage:
Business Insurance
For businesses, insuring themselves against
potential lawsuits can be vital to their success and survival.
In particular, small companies are increasingly at
risk to be nailed by major lawsuits or claims from former customers
that may leave them bankrupt or struggling financially. It
is best for businesses to look into all areas of insurance
to make sure that they are covered against any possible problems
that may arise. Having to deal with an unexpected insurance
claim can be damaging to a company, particularly if the business
does not have insurance. There are a number of types of insurance
policies that can be useful for businesses to research and
invest in. One of these types of insurance is Products and
Completed Coverage. Products and Completed Coverage covers
businesses for claims that come from products or work that
a business has sold, distributed and/or completed.
One
common use for Products and Completed Coverage is for
products sold, manufactured, distributed or leased by a company.
If customers are injured as a result of using the company’s
product and the customer files a claim, Products and Completed
Coverage ensures that the company will be covered by their
insurance policy to pay for any problems caused by the product.
This type of insurance can help settle claims with
unsatisfied customers and avoid major lawsuits that can
put companies out
of business. Although all companies strive to produce the perfect
product that will satisfy all customers, there is always a
chance that something could possibly go wrong along the way.
For example, if a bicycle company manufactured one bike that
was accidentally put together incorrectly and then the bike
was sold and used by a customer who fell off of it because
of its faulty manufacturing, the customer could file a claim
against the bicycle company. Products and Completed Coverage
would keep the bicycle company from having to pay the customer
out of their own pocket. Products and Completed Coverage policies
are there in the event that an unexpected problem arises.
The Products and Completed coverage also
covers businesses that perform a service for a customer
and something goes wrong
with the result of the service. If the product your business
sells is a service performed by your employees then anything
that goes wrong with the service can be covered under a Products
and Completed Coverage policy. For example, companies who offer
carpentry services to customers have a lot of responsibility
on their shoulders to be sure that everything they manufacture
is built correctly. If a carpentry service is performed on
the home of a customer and then a week later the customer is
injured because the service was not completed properly, your
company will be at fault. The customer will then have an option
of filing a claim for their injury and if you do not have insurance
your company will be liable to pay the customer’s claim or
go to court. Since, in this case, it is likely the customer
would win a lawsuit; most businesses would choose to settle
the claim outside of court and simply reimburse the customer
for their medical expenses resulting from the injury. If the
business does not have insurance they will be left footing
the bill from their own finances. With other types of insurance,
events such as this may not be covered. However, with Products
and Completed Coverage injuries such as this will be fully
covered and taken care of through your insurance policy.
It is very important for businesses to insure themselves against
any possible lawsuits and claims that may arise. Products and
Completed Coverage is a great way for businesses to settle
claims and avoid lawsuits. Products and Completed Coverage
are a particularly smart choice for small, independent companies
that could be put out of business by a single lawsuit from
an unsatisfied customer. Problems from your own products and
services can be rare and unexpected but it is always best to
be prepared for the unexpected. Products and Completed Coverage
allows companies to insure themselves against any unforeseen
problems that may arise. Without insurance these unforeseen
problems can put a business at high risk for bankruptcy or
severe financial troubles. Products and Completed Coverage
will keep businesses safe and covered in the event of any difficulties.
# # # # #
by SolveYourProblem.com : 2005
> Home > Insurance
Articles : Main Page
|
