What is Product Liability Coverage?
Businesses that manufacture and/or sell products are exposed to risks long after they sell their wares. Should a product ever cause physical harm or property damage, the maker or seller may be sued. Product liability insurance can help protect Massachusetts businesses that manufacture or sell products from potential lawsuits over malfunctioning products.
Product liability coverage is a type of liability insurance that specifically protects businesses from covered incidents that involve products.
Often, a business may be held financially responsible if a product it makes or sells causes physical harm or property damage, and the cause is traced back to one of these things:
- A manufacturing or production flaw
- A design defect
- Insufficient instructions or warnings
Product liability policies will normally cover legal fees and settlements associated with covered lawsuits that make one of these allegations.