Product liability insurance covers claims is linked to product defects. If your company manufactures or sells a product that has a defect and causes injury or property damage, your business could be held liable. If your product causes damage, illness, or hurt someone, they’ll likely seek compensation through the court.
Customers may also claim the product has the in-built danger that customers should have been made clearly aware of with a label, For example “Keep product away from kids” or “beware product is hot”.
The main purpose of Product Liability insurance is to cover legal costs and damages for the business due to the claims. Therefore, any company that manufactures, supplies or sells products to the public should have product liability.