South Dakota Product Liability Insurance Policy Information
South Dakota Product Liability Insurance. This insurance is crucial when you run a business. When a claim is made against your company because of a problem with your product, having this type of insurance keeps you protected. Product liability is a must to keep your business covered if bodily injury or property damage occurs as a result of the use of your product. Covering your business with this type of insurance is important and can save you millions of dollars if you are sued. If your product causes damage to a buyer or a third party you are covered having this South Dakota product liability insurance for your business.
When you run a business there are a wide range of risks that you need to be aware of that could potentially turn into a problematic legal situation. By being proactive and finding a solid South Dakota product liability insurance policy from a reputable company, you can help to protect your business from future lawsuits.
South Dakota product liability insurance protects your business from lawsuits with rates as low as $107/mo. Get a fast quote and your certificate of insurance now.
What Does SD Product Liability Insurance Protect Against?
Design Defect Claim - A design defect claim is when a person who bought your product claims that the product is unsafe because of a defect in its design. Once a person believes they were injured because of a defect in your product they can sue your company.
Manufacturing or Production Flaw - A person that buys your product and is injured could claim that during the process of producing the product a defect was created. Probably the person who bought the product is injured while using the product if so they could make this claim against your business.
Product Warnings And Instructions - If a person feels that they were injured by your product because you did not have enough warnings or instructions, then they could make this claim against your company. The claimant says that because of the lack of instruction they were injured while using your product and decided to sue your business.
You Need Protection Even If You Are A Seller
Most of the lawsuits that happen may fall on the manufacturer of the product, but there may be times when the suit could fall on the product seller as well. Typically if the seller directly imported the product from outside the USA, or if you white or private label or alter the product in any way. In a case like this, it is always a good idea as a vendor to have South Dakota product liability insurance protection for your business. Product sellers include wholesalers, retailers, distributors, and resellers. Once you are involved in the process of selling the product you need to have this protection for your business.
If a seller helps to market a product to a buyer and that buyer is injured, that seller could be held liable. If the seller has to pay for the damaged caused to a buyer then the seller could turn around to sue the manufacturer to make up for the losses from the lawsuit.
If a buyer can prove that the product manufactured contains a defect, injures the buyer or the injury occurred while the buyer was using the product then the buyer may win a product liability lawsuit. In a case like this, the seller or the manufacturer can be sued in the absence of negligence.
Payment For Damages
When your business is sued, you may have to pay for the expenses that occur as a result of using your product. Whether it is medical expenses, loss of income or pain and suffering your business may have to pay. Lawsuits against your business can cost you lots of money, and having the right South Dakota product liability insurance coverage is the way to keep your business protected when it does.
Product Liability Insurance Costs
You may have a business that manufactures a hazardous product, because of this, it may be harder for you to get product liability insurance. Using a specialty insurer can help you to get this type of insurance. Using a surplus lines broker helps you to find this kind of insurer. How much you're charged for liability insurance depends on the type of product your business produces. The more hazardous the product made by your company, the more expensive it is to get insurance. However the lower the hazard risk of your product the less money you'll have to pay. When getting this type of insurance, your insurer will categorize your business and assign a class code.
SD Product Liability Insurance
When you make products and people buy these products, there is always the chance that your business could be sued because of these products. Having product liability insurance protects you in cases where your company is sued because of your product. Speaking with an experienced insurance agent can help you to find the right insurance for your business. Taking the time to find the right insurance for your company and can save your business from financial ruin if you are ever sued in the future.
South Dakota Economic Data, Regulations And Limits On Commercial Insurance
When thinking about opening a business, there are a lot of factors that need to be taken into consideration. Of these factors, location is one of the most crucial. In order for your business to thrive, the area where you set up shop must offer a favorable economy and a market that will benefit from the products and/or services you provide.
Assessing the unemployment rate and the top industries that are thriving in a particular state can help you determine if a particular location will be beneficial for your venture. Additionally, it's important to have an understanding of the types of commercial insurance policies you'll need to carry to protect yourself and others you interact with, as well as to ensure you are complaint with the law.
If you're thinking about starting a business in South Dakota, read on for an overview of the economic trends and commercial insurance requirements in the Mount Rushmore State.
Economic Trends For Business Owners In South Dakota
According to the Bureau of Labor Statistics, the unemployment rate in South Dakota was 3.2% in December of 2019. While this is marginally higher than the 2.9% of July, 2019, it is still .03% lower than the national average, which was 3.5% in the last month of the year.
The low unemployment rate indicates that the state offers healthy conditions for prospective business owners who are considering establishing a company in the Mount Rushmore State.
There are several areas within the state that are seeing a spike in business development, including large metropolitan areas, as well as some smaller cities and suburban regions. The best places to open a business in South Dakota include:
- Rapid City
- Sioux Falls
Compared to the large, open expanses that South Dakota is famous for, the above-mentioned areas are easily accessible and more densely populated; hence why they're ideal for business endeavors.
There are several industries that are seeing significant gains in SD. Some of the largest industries include:
- Agriculture, fishing, and forestry
- Casino gaming
- Hospitality and tourism
- Services and labor
Commercial Insurance Requirements In South Dakota
The South Dakota Division of Insurance regulates insurance in SD. South Dakota mandates very few forms of insurance coverage by law. They enforce worker's compensation.
South Dakota requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
South Dakota also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Manufacturing & Wholesaler Insurance
Read informative articles on small business manufacturing and wholesale insurance. Manufacturing and wholesale companies face many risks due to the nature of their business operations.
- Canned Fruit & Vegetable Manufacturers
- CBD Oil And Hemp
- Machine Shop
- Product Liability
- Wholesaler Distributor
For manufacturers and wholesalers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products. Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
Wholesale and distribution operations have many of the same physical damage and property coverage concerns as warehouse operations. In both, the value of both real property and stocks of merchandise is very high. Loss control and other techniques appropriate to the types of merchandise involved are needed. For these reasons, adequate and appropriate property insurance coverages are important.
The commercial auto exposure can also be significant, based on the extent of merchandise delivery. In addition, transportation or motor truck cargo insurance on the merchandise must also be arranged.
Employee theft is always an issue and can be a significant exposure, depending on the type of property involved. Finally, the types of merchandise and material handled makes workers compensation insurance another very important coverage.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Bailees Customers, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
Request a free South Dakota Product Liability insurance quote in Aberdeen, Antelope, Arlington, Ashland Heights and Alcester, Aurora, Baltic, Belle Fourche, Beresford, Blackhawk, Box Elder, Brandon, Britton, Brookings, Canton, Centerville, Chamberlain, Clark, Clear Lake, Colonial Pine Hills, Crooks, Custer, Dakota Dunes, De Smet, Deadwood, Dell Rapids, Eagle Butte, Elk Point, Eureka, Flandreau, Fort Pierre, Fort Thompson, Freeman, Garretson, Gettysburg, Goodwill, Green Valley, Gregory, Groton, Harrisburg, Hartford, Hill City, Hot Springs, Howard, Huron, Ipswich, Kyle, Lake Andes, Lake Madison, Lead, Lemmon, Lennox, Madison, Manderson-White Horse Creek and Philip, Marion, Martin, Milbank, Miller, Mission, Mitchell, Mobridge, North Eagle Butte, North Sioux City, North Spearfish, Oglala, Parker, Parkston, Parmelee, Piedmont, Pierre, Pine Ridge, Platte, Porcupine, Rapid City, Rapid Valley, Redfield, Rosebud, Salem, Scotland, Shindler, Sioux Falls, Sisseton, Spearfish, Springfield, Sturgis, Summerset, Tea, Tyndall, Vermillion, Viborg, Volga, Wagner, Wall, Wanblee, Watertown, Webster, Wessington Springs, Whitewood, Winner, Worthing, Yankton and all other cities near me in SD - The Mount Rushmore State.
Also learn about South Dakota small business insurance requirements for general liability, business property, commercial auto & workers compensation including SD business insurance costs. Call us (605) 205-5099.