What is a product liability insurance policy?

A product liability insurance policy is a type of insurance policy that protects individuals and businesses from potential losses related to defective products. Essentially, it acts as a safeguard against being held liable for any injuries, death, or financial losses that could result from selling a faulty product. Product liability insurance is especially important in California because the state has some of the toughest product liability laws in the nation. Under California’s strict liability doctrine, a person can be held responsible for injuries or death caused by using a defective product even if they weren’t actually liable for making the product. This means that a company that manufactures, sells, or distributes a product can be held liable if it is later found to be defective, regardless of whether the company was at fault or not. Product liability insurance policies are designed to protect companies against this type of exposure. A policy generally covers such losses as legal expenses, medical costs, lost wages, and other expenses related to a product liability lawsuit. It also helps to protect the company’s reputation and financial assets in the event of a lawsuit or settlement. However, not all policies are the same, so it is important to carefully review any policy before making a purchase to ensure that it offers adequate protection.

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What is a product liability insurance policy?

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