What is a product liability insurance policy?

A product liability insurance policy is a type of insurance policy that protects companies from the financial costs of damages and injuries that arise from a product being defective or dangerous. This type of insurance is especially important for businesses that sell tangible products, since a product defect or injury can lead to expensive lawsuits. In New York, a product liability insurance policy is a requirement for any business that is involved in the creation, production, distribution, or sale of a product. Product liability insurance policies cover the costs of any legal action, including any liability awards, if a company is sued for a product-related injury or death. It also covers the cost of any necessary product recalls or repairs caused by a defect. Insurance providers may also offer additional coverage, such as protecting companies from customer dissatisfaction or loss of income that results from a product liability lawsuit. Additionally, product liability insurance policies can provide companies with vital protection from the cost of any third-party claims that are related to their product. For instance, a company may be liable for any damages or injuries caused by a defect in their product even if they weren’t the direct seller or distributor. Product liability insurance can help protect companies from being held responsible for these types of claims.

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What is a product liability insurance policy?

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