Business Product Liability insurance protects the product manufacturer, seller, or distributor from legal liability associated with a product defect that causes personal injury or damage associated with its use.
Insurances
Product Liability
January 5, 2025 | by MHG Team
Product Liability
What Does Product Liability Insurance Cover?
Product Liability insurance helps protect businesses if they are accused of making, distributing or repairing a product that causes harm. Some product liability coverage is typically included in a general liability insurance policy, but businesses facing greater risks may need to increase their limits or purchase additional coverage.
Product Liability insurance helps protect a business when there’s a claim that a product it made or sold caused harm.
Claims of physical injury or property damage can be brought by the buyer of the product, a user of the product, or a bystander. The physical harm or damage caused by the product can be the result of the following:
- Design flaws;
- Product defects.; or
- Inadequate instructions, labels and warnings.
Product Liability insurance is not legally required, but a business that does any of the following product-related activities should consider purchasing it:
- Manufacturing;
- Distributing.;
- Wholesaling;
- Importing;
- Retailing;
- Installing; and/or
- Repairing/modifying
