A policy that provides indemnification against legal liability for unintended physical injury/ harm caused by the product to outsiders.
Product liability insurance protects companies that could be exposed to financial loss due to claims resulting from product issues or faults. This policy covers legal defence costs, settlements, and awards given to those injured. It is especially useful in industries where product errors can lead to serious damage.
Not only does the coverage helps to pay for any legal fees, but it also assists businesses in improving safety standards to lessen the chances of future claims being made. It is a type of protection that grants indemnity in the case of legal responsibility due to accidental harm or destruction caused by the product to third parties.
In addition to legal expenses, product liability insurance can also cover medical expenses, compensation, and business losses.