Product liability refers to a manufacturer, seller, vendor, distributor being found legally liable for placing defective product or merchandise into the marketplace and hence responsible for the harm it causes. It is a risk that potentially can affect everyone in a distribution chain.
Liability attaches when defects that result in bodily injury or property damage
Protection against financial damages arising from
- Manufacturing production flaw
- Design defect
- Defective warnings or instructions
- Strict liability
- Marketing and distribution
- Legal fees for the insured
- Medical costs, compensatory and business damages awarded to the injured party.