Product Liability covers the area of law in which manufacturers, distributors, suppliers, and retailers who manufacture or import products are responsible for any injuries those products may cause.
The claims most commonly associated with product liability are negligence, strict liability, and breach of warranty.
There are three major types of product liability claims:
- Manufacturing Defect
- A Failure to Warn (also known as marketing defects)
- Design Defect
Product Liability Insurance
Product liability insurance protects your business from claims related to products your company sells, imports, or distributes. A policy can cover injuries to a buyer, user or bystander caused by a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn. When it is part of a commercial general liability policy, the coverage is sometimes called products-completed operations insurance.