Product Liability
What Does Product Liability Mean?
Product liability refers to the obligation of a manufacturer or vendor to ensure the quality of the goods they produce or sell. They can be held accountable and subject to lawsuits for damages caused by defective products. In the context of insurance, many companies purchase product liability insurance to secure financial protection against such lawsuits.
Insuranceopedia Explains Product Liability
An individual injured by a defective or unsafe product has the right to pursue legal action against the product’s designer, manufacturer, or vendor. While manufacturers strive to prevent defects, unsafe products occasionally reach the market. As product liability litigation has increased, those involved in the design, manufacturing, or sale of products may find product liability insurance beneficial. This trend aligns with the evolution of consumer law, shifting from a “buyer beware” approach to imposing strict liability on parties involved in the production and sale of goods.
