Questions & Answers

Posted by Karen L Brown on 2016-08-07 09:13:00
Title: Is Special Risk Product Liability Insurance necessary?
Category: Operations

My insurer has recommended Special Risks Product Liability insurance coverage to me. My business is online and I am a Canadian distributor of products in the healthcare industry. I don't manufacture, retrofit or package any of these products yet my insurer says this insurance could protect me should anyone in Canada launch a lawsuit against the manufacturer which would include me, even though I may be released through whatever process takes place. I have done some research and it seems that the only people talking about this type of insurance are insurance companies. Of course I already have a commercial package but this 'special risk' is apparently not covered and seems to be the means by which insurance companies cover Internet based business. As it is quite expensive, I'd be interested in any opinions anyone cares to offer. Thank you in advance.


Catherine Goguen
2016-09-01 11:06:00

We suggest that you consult with a legal expert to discuss the potential scenarios implicated by this type of liability. Some law firms offer services specifically related to special risk insurance and may be able to analyze or draft this type of insurance contract and provide advice on your particular situation.

Please consult the Canada Business Network website for information on starting and growing your small business and more information on Insurance for your small business. For detailed questions about insurance, you may wish to contact the Insurance Bureau of Canada.