What Does Product Liability Insurance Mean?
Product liability insurance (also known as products-completed operations insurance) is a policy that pays for damage or injury caused by a product sold by the policyholder. It can also cover the fees that arise from legal action against the policyholder because of their product.
Insuranceopedia Explains Product Liability Insurance
There are three areas covered by a product liability policy:
- Defects from the production or manufacturing process
- Defects from the design
- Faulty or deficient product information
This policy covers the financial compensation to the aggrieved client or customer and financial assistance when the seller or manufacturer gets entangled in a legal process.