Skip to content
- Design Defects: If a product is inherently unsafe due to its design, consumers who are injured as a result may sue the manufacturer. For example, a poorly designed car seat that fails to protect a child in an accident could lead to substantial claims. Product liability insurance covers the costs associated with these claims, including legal fees and settlements.
- Manufacturing Defects: Errors that occur during the production process, such as contamination of food products or faulty assembly of electronics, can make products unsafe for use. When these defects cause harm, product liability insurance steps in to cover the resulting claims.
- Failure to Warn: Companies are required to provide adequate warnings and instructions for their products. If a product lacks proper labeling and a consumer is injured as a result—for instance, if a chemical product lacks a warning about its corrosive properties—the company could be held liable. Product liability insurance covers these types of claims, ensuring that businesses are protected.
