It is a cover that provides indemnity against legal liability for accidental bodily injury/ damage caused by the nature of product to third parties. Product liability insurance can help protect you in the event that your business faces a lawsuit. It does so by covering the legal fees that could otherwise lead to major hardship. Also, the insurance covers medical costs, compensatory and business damages.
Product liability insurance protects a company against claims or suits arising from the company’s products, whether they were made by the company or sold by them. This form of insurance covers a manufacturer’s or seller’s liability for bodily injury or property damage sustained by a third party due to a product’s defect or malfunction. The product may be virtually any type of good sold to businesses or the public, like machines, food, medicines, and clothing. The injured third party may be a buyer or user of the product or even a bystander.