What is a product liability insurance policy?

A product liability insurance policy is a type of insurance that protects companies from financial losses due to claims or lawsuits related to products they sell. In South Carolina, product liability laws are important for protecting consumers from dangerous products that may cause injuries or other harm. Product liability insurance provides a type of protection against potential claims if a product is found to be defective, poorly designed, manufactured, labeled, or inadequately tested. Product liability insurance policies typically cover the costs associated with defending a company in a lawsuit, as well as potential damages that are awarded to a plaintiff. Depending on the policy, these damages may cover not only physical and emotional harm caused by a defective product, but also economic damage such as lost wages, medical bills, and property damage. Product liability policies also may cover punitive damages, which are awarded to punish a company for negligence or intentional wrong-doing in creating, marketing, or selling a dangerous product. In South Carolina, everyone in the chain of production is responsible for making sure their products are safe for consumers, including manufacturers, distributors, and sellers. Product liability insurance can help protect these entities from the financial consequences of producing or selling a harmful product.

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What is a product liability insurance policy?

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