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Product Liability Insurance versus Products and Completed Operations Coverage

Colburn Law

Owning a company can be risky. Business owners can face liability in many situations, from injuries caused by employees or hazards on their commercial properties to harm caused by dangerous and defective products.

To protect their financial interests in these situations, business owners carry various types of liability insurance. When it comes to defective products, it is important to carry product liability insurance, which includes completed operations coverage.

What Is Product Liability Insurance?

In Washington, people who are injured by a defective product have the right to file a lawsuit against the manufacturer, distributor, or even the retailer of that item. A product liability settlement can exceed hundreds of thousands of dollars. If a business were to pay for this settlement out of pocket, it could face significant financial distress.

Product liability insurance is a type of general liability coverage. These policies are designed to protect businesses when they face legal action due to product defects. When a policyholder faces litigation, the insurance will pay for any settlements or jury verdicts that incur. 

For example, say that a business manufactures a medication that treats acid reflux. However, this medication contains a carcinogenic impurity that causes many patients to develop cancer. In this situation, affected customers can file product liability lawsuits against the business, and its product liability coverage will pay for the settlement.

What Is Products and Completed Operations Coverage?

Product Liability Insurance versus Products and Completed Operations Coverage

Products and completed operations coverage is another name for product liability insurance. However, this term provides more insight into what this insurance actually covers. 

First, this coverage provides protection to companies that manufacture and sell products. If a person suffers property damage or bodily injury due to a product defect, this coverage will help protect company assets and pay for whatever damages that the customer claims.

Second, completed operations coverage extends protections to companies and contractors that perform construction or installation. As these activities take place at clients’ homes and businesses, these protections provide additional peace of mind for any legal action that arises due to the contractor’s actions.

For example, say that a contractor uses inappropriate material to complete an installation in a client’s home. If the occupants of the home suffer injuries due to this defective material, completed operations coverage may pay for any financial or legal issues that arise.

What to Do If You Are Injured by a Defective Product

A defective product can significantly impact a person’s life. If you come into contact with a dangerous product, you can incur thousands of dollars in medical expenses, weeks of lost wages, and significant pain and suffering. In these situations, you may be eligible for legal action.

By filing a product liability lawsuit against the manufacturer, you can recover compensation for medical expenses, property damage, and any other damages. To support your future case, take the following steps after your injury.

  • Seek medical attention and ensure that you have records on file that detail your injuries and the treatment that you require.
  • If possible, take photographs and videos of your injuries, the product, and the aftermath of the injury.
  • Save the defective product if you are able, and collect any documents that prove your purchase and use of the item.

Once you seek medical care, contact a Washington defective product lawyer as soon as possible. Your attorney will evaluate your case and help you identify your optimal path to compensation.