Just as the US Food and Drug Administration and safety regulations protect consumers, product liability insurance OC aims to protect companies against lawsuits resulting from the manufacture, sale, or distribution of defective or unsafe products. But what exactly does this insurance cover?

Under the product liability insurance umbrella are various categories including miscellaneous consumer protection, negligence, strict liability, and breach of warranty. Among the reasons companies can get sued for product liability are insufficient warnings on the product label regarding the user’s risk, or a design defect or manufacturing flaw that rendered the product unsafe.

These reasons can make companies or sellers liable for damages, as well as medical costs and attorneys’ fees, if they are sued due to manufacturing or selling a defective product. Product liability insurance provides the funds necessary to pay these costs—which can rise to a substantial amount and potentially cause a company financial ruin if they did not have this type of insurance.

There is always an inherent risk of a problem whenever products are manufactured and sold. However, obtaining product liability insurance OC would provide the means to help companies save themselves from ruin if they were ever faced with a lawsuit due to a defective product.