Product Liability Insurance protects your business against any of the product that you sell that could potentially cause harm to someone using it. This could include pharmaceuticals, electronics, toys, or many consumer products. In an age where lawsuits are on the rise and every lawyer will advise their clients to sue over almost any incident, it is very important to make sure that you are covered. Here is a brief look at what the benefits of product liability insurance may be for your particular company.
Retailers are often the first person the consumer will lash out at if they, or someone they love, are harmed by a faulty product. The retail store was the place where they bought the product, and in their mind will often be responsible. While it is true that retailers, wholesalers, and manufacturers share the burden of responsibility, as a retailer you cannot count on the wholesaler or manufacturer to get you out of trouble. Product liability insurance will cover the retailer’s liability for losses or damage due to a product they’ve sold, including defective products and product malfunction. If you have failed to attach appropriate warning labels to your products, you may also find some coverage for that—although not every liability policy includes warnings. Still, there are other forms of retail insurance that will fill in the gaps.
As a small business owner, your cash flow is much less than that of a large corporation or retailer, so your ability to deal with lawsuits is thus significantly lesser. Product liability insurance not only protects you from liability but can also provide a second warranty on the product; if the product is found to be defective, this type of insurance can protect your small businesses and may redirect responsibility to the manufacturer rather than you the small-scale retailer or shop owner. You can also feel safe knowing that product liability insurance may actually help to make products safer, as in the event a defect is found and a lawsuit against the manufacturer is placed, chances are high that the product will be recalled and redesigned until it is safer to use.
If you are responsible for selling or distributing a product from the manufacturer to the retailer, you may think that you are free of the burden of responsibility if the product is faulty or dangerous. However, this is not true. If there is a lawsuit, chances are that the retailer to whom you sold the product will make sure you are named as a responsible party; product liability insurance helps to protect you in these circumstances. Keep in mind that if you are responsible for the application of warnings or labels and failed to meet that responsibility, product liability insurance may not protect you from all liability—it is not a panacea for irresponsible business decisions. It may be wise to seek additional insurance to protect your interests.
While manufacturers can get special insurance designed to protect their own unique interests and risks, their total coverage package will usually include product liability insurance. However, an important thing for manufacturers to note is that product liability insurance typically doesn’t cover manufacturer defect, design defect, or failure to warn/missing labels. Because of this, manufacturers may want to make sure that their primary insurance does cover such issues. At the very least, they should consider a secondary manufacturer’s insurance which will cover those particular issues.
This article was written by Edda Miller for the team at Psychology Career Choices. They help people with psychology degrees find career paths.
It is pretty obvious that stay-at-home parents and spouses do not get the respect they deserve. While they do get a lot of respect in some circles, it is nowhere near what they should be getting. A 2007 study done by the website Salary.com showed that when all the duties of a stay-at-home spouse or parent are combined together it amount to about $134,000 a year. Now that is a lot of money! Of course, stay-at-home spouses and parents are not necessarily paid for their work, at least not in most cases, but they would definitely be missed if they were not around.
The duties that were used to calculate the average yearly salary were cooking, cleaning, childcare, tutoring, organizing, secretarial work and transportation among many other duties. Indeed, a house would not run, and probably a family would not run either, if a stay-at-home spouse or parent was not keeping down the fort and raising the children.
So, what happens if something tragic happens and that stay-at-home parent or spouse passes away prematurely? All of a sudden, their presence is gone and the void left behind by all the hard work they did is dramatic.
In order to safeguard against this kind of tragic circumstance, many insurance companies offer insurance for non-working spouses and parents. The money received from the non-working spouse and parent insurance would cover the costs of the loss (as callous as that sounds) and would allow the family affected to hire in-home help for all those valuable duties that were once performed by the stay-at-home spouse or parent. It is a tough situation to deal with, but at least these types of insurance policies offer some relief from that reality.
The insurance policy is especially critical for spouses and parents who are the primary caregiver in the household, because they do the most, and often the other parent is not as familiar with all the duties. That, when combined with their working duties to fund the family, makes it a very difficult situation to navigate. Other things that come with non-working spouse insurance is funeral expense coverage as well as other things. Technically, this form of insurance is the same thing as life insurance, but comes with special policies that fit the non-working spouse situation in particular. It is even beneficial for many families to take out non-working spouse insurance even if the person being insured does not care for the children, or if the family does not even have children at all.
It is important to weigh the benefits and risks associated with a non-working spouse life insurance policy and to shop around and find the policy that works best for your family situation. The most important thing is to make sure that the non-working spouse life insurance policy will cover at last the final expenses. These are expenses related to costs that occur directly after the passing of the non-working spouse (i.e. funeral expenses, medical bills, etc.) These tend to be very expensive, and a good insurance policy will at least curtail those expenses, if not pay them entirely. Usually, you want a final expenses coverage policy worth at least $50,000, as that is the average cost for such things. The monthly premium costs for non-working spouse life insurance vary from one case to another, but most insurance policies can be managed at about $100 a month for a $50,000 to $100,000 non-working spouse life insurance policy.
This article was written my Carel Jonnson, who regularly volunteers to at his local hospitals has worked with many grieving family members, he recommends www.lvnprogramsincalifornia.net for a quality school.
When you look for the right life insurance policy, it’s important to understand the types of insurance available so you can be confident you make the right buying decision. In general, life insurance comes it two basic categories: term and permanent. A term life insurance policy has designated start and end dates. It covers you between those specific dates, so long as you continue to pay the agreed premium. Permanent life insurance policies have no end date. They cover you as long as you continue to pay the monthly premiums.
A term life insurance policy gets its name from the coverage “term,” or specified dates of coverage. You can buy a short policy that covers you for only a year, or sign up for a policy that covers you as long as 30 years. A term life policy is best for those who want to ensure their dependents can continue the same standard of living the insured person’s salary provides.
A permanent life insurance policy is an open-ended policy. The policy lasts until you cancel or until the policy pays out because of your death. The biggest selling point for permanent life insurance is the ability to accrue interest and cash value on the policy. You can borrow against it while you are still living. However, these types of benefits are better secured through banking and other investment vehicles. Permanent life insurance policies are complicated, costly and rarely the best insurance option.
Agents break term life insurance policies into three categories: Guaranteed Level, Return of Premium, and Annually Renewable. All of these policies carry specific limits on the amount of coverage over a specific time. There are four main types of permanent life insurance policies, but there are many other special variations put out by different companies using their own special brand of sales gimmick. Generally, permanent insurance comes as whole, universal, variable, or universal variable.
Annually renewable policies offer basic security. You can renew your policy each year, but the premium will increase as you age. These policies work best in situations where you need coverage for only a short time. If you know you need life insurance, but you are still researching your options, consider buying one of these policies right away to make sure your family is covered until you can make a more lasting decision.
Guaranteed level term life insurance is the most commonly purchased type of term policy. That’s because it guarantees you a set premium every month. You’ll pay a little more for the convenience and security of a guaranteed premium, but the cost is still much lower than any type of whole life insurance. You can buy guaranteed level policies in terms of 5, 10, 15, 20, 25, or 30 years.
Return of premium term life insurance pays a refund when the term ends, if the insured person is still living. The policy costs about 25 to 50 percent more than regular term insurance. It’s like a hybrid of permanent and term life insurance. The insurance company invests the extra money you pay, and you get back that extra 25 to 50 percent if you are living at the end of the policy term. Consumer groups don’t recommend this type of policy because it only benefits the insurance company, not the policyholder. The insured does not get back any of the profits made on the insurance company’s investment.
Most people like term insurance because it is so affordable. However, permanent insurance can have some tax advantages for very wealth individuals. You can buy a convertible term life insurance policy that offers the chance to convert to whole life without taking a medical exam. Such a policy leaves more options open to individuals as their life insurance needs change.
Whole, sometimes called traditional whole life insurance, provides life insurance coverage from the day the policy begins until the death of the insured person. The policy accrues a cash value based on the additional premium you pay every month. You pay the administrative costs on the investments, and must split the returns with the insurance company. The policy premium remains constant, so changes can only be made by purchasing a different policy.
Universal life insurance, sometimes called “interest-sensitive whole life insurance” separates different elements of the policy so that the premiums can be more flexible. The coverage is still permanent, so it will continue until the covered individual cancels the policy or dies, but the premium calculations are more complex. For instance, after 20 to 30 years, the cash value of the policy and investment returns may become enough to pay the premium. This way, the insurance pays its own policy premium and the insured can stop sending in regular payments.
Variable life insurance policies are riskier because the cash value can change depending upon the returns on investments. With universal, you have more choice of the investments to use, but you still pay administrative costs and must split returns with the insurance company. Universal variable is a universal policy that offers the variable investment component.
While the reasons are complex and varied, the simple truth is that whole life insurance costs more than term. If one were to buy the benefits offered by whole life insurance separately, the cost would be much less. One could take the premiums saved by purchasing term and then invest the different in premium through a bond, CD or other secure investment and realize greater savings plus better returns.
Although it wasn’t always the most popular type of insurance, term life is now the type of coverage most people buy. Coverage is simple and straightforward. All you have to do is choose the length of time you want coverage and how much the policy should pay the beneficiary. The only real decisions that you have to worry about are how long the term needs to be and how much money your dependents would need to maintain their current quality of life in the event of your death. Once the term expires, the insurance coverage ends and you have no further obligations.
Once you understand that life insurance is mean to replace your income should you die before your time, you can see that permanent life insurance does not make sense. You will not need insurance for your entire life, so why would you need an open-ended policy? For example, if you have a mortgage that your spouse would have to pay alone or children who depend on your income, term life insurance can protect their needs. Once the kids leave home or the mortgage is paid, you no longer need life insurance. With permanent insurance, you pay more for a policy that hangs around long after you need it.