Product Liability Insurance
Updated: 19 October 2024
What Does Product Liability Insurance Mean?
Product liability insurance, also known as products-completed operations insurance, is a policy that covers damages or injuries caused by a product sold by the policyholder. It can also cover legal fees arising from lawsuits against the policyholder due to their product.
Insuranceopedia Explains Product Liability Insurance
A product liability policy covers three main areas:
- Defects arising from the production or manufacturing process
- Defects in product design
- Inadequate or faulty product information
This policy provides financial compensation to the affected client or customer and offers financial assistance if the seller or manufacturer becomes involved in legal proceedings.
