What Is a Product Liability Insurance?

Product Liability Insurance

Product liability insurance covers your business from claims that a product you sold, created, manufactured, or distributed doesn’t work properly and caused bodily injury or property damage to someone else’s belongings. It provides compensation coverage for any damage to property. As a small business owner, you will be legally responsible if you damage a person’s property. However, if your business is responsible for any damage in someone’s small business, the product liability insurance would pay for the loss of wages in the small business.

Product liability insurance protects a small business from claims of property damage and bodily injury. It provides financial assistance to cover legal fees, judgments against you, settlements, and economic or business damages. It will also cover the injured party’s medical costs. Businesses that make, sell, or distribute products need product liability insurance. If someone files a product liability lawsuit against your business, product liability insurance helps cover legal, medical, and financial costs.

Product liability insurance provides coverage against expenses when a person claims a product your business sold, made, or distributed caused bodily injury or property damage. It provides financial assistance for legal fees, judgments against you, settlements, and economic damages. It will cover medical costs for the injured party. You can pick the level of cover depending on what would best suit your business.

Product liability insurance is important for the long-term survival of businesses working in manufacturing. It covers defending claims of injury or damage caused by defective products. The cost depends on product type and supply chain position. With an experienced advisor, product liability insurance brings policies from multiple providers for easy comparison.

Types of Product Liability

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Product Liability vs. Professional Liability Insurance

What is the difference between product liability and professional liability insurance?

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