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Product liability insurance

Product liability insurance

What is Product liability insurance?

Product liability insurance is a type of coverage that protects businesses from financial losses arising from legal claims related to the safety or performance of their products. It typically covers legal defense costs, settlements, and court-ordered judgments.

Product liability insurance is a type of business insurance that provides financial protection to manufacturers, distributors, and retailers against claims arising from injuries or damages caused by their products. This insurance coverage helps businesses mitigate the financial risks associated with product-related lawsuits, including legal expenses, settlements, and damages awarded to injured parties.

Understanding Product Liability Insurance:

Product liability insurance is designed to cover legal costs and financial damages associated with product-related claims, such as:

  1. Manufacturing Defects: Claims resulting from defects in the design or manufacturing process that render the product unsafe or unfit for its intended use.
  2. Design Defects: Claims alleging that the product's design is inherently flawed, leading to foreseeable risks or hazards for consumers.
  3. Marketing and Labeling Errors: Claims related to inadequate warnings, instructions, or labeling on the product, leading to misuse or injury.
  4. Bodily Injury or Property Damage: Claims arising from injuries, illnesses, or property damage caused by the use or consumption of the product.

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