Product Liability Insurance
What is Product Liability Insurance?
Product liability insurance protects businesses against claims arising from product defects. If your product causes injury or property damage, you could be held liable, and affected customers may seek compensation in court.
The main purpose of this insurance is to cover legal costs and damages. Therefore, any company that manufactures, supplies, or sells products should invest in product liability insurance.
What Does Product Liability Insurance Cover?
Product liability insurance will cover product claims arising from rand of defects such as:
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Design defects: claims related to the product issues that were present even before it was made.
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Manufacturing defects: claims related to problems that occurred while the product was being created or assembled.
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Warning or use defects: claims that the seller failed to provide detailed labels or warnings on risks and proper use.
Product Liability Insurance Tips
Product liability coverage will also not cover the cost of a product recall. Hence, product companies may also need product recall insurance.