Products Liability Insurance protects your business from claims related to the manufacture or sale of products, food, medicines or other goods to the public. It covers the manufacturer's or seller's liability for losses or injuries to a buyer, user or bystander caused by a defect or malfunction of the product and, in some instances, a defective design or afailure to adequately warn users.

If you think that you do not need this
coverage it is critical for you to understand the potential liability that
exists. There are generally three types of products liability "claims" a
company may face:

• Manufacturing or Production Flaws - A claim from a third party that some part of the production process created an unreasonably unsafe defect in the finished product. An example of this is claims against manufacturers regarding the presence of dangerous chemicals in their toys.
• Design Defect - A claim that the design of the product is inherently unsafe.
• Defective Warnings or Instructions- A claim that the product was not properly labeled or had insufficient warnings for the consumer to understand the risk.

The damages awarded in these claims may include medical costs, damages paid for compensation and may include attorneys' fees, costs and punitive damages. Products liability claims can destroy
businesses so it is critical if you are involved in the manufacture, wholesale or retail of products. If your company provides any products to the consuming public, then you need product
liability coverage.