What is the main purpose of the products liability coverage for a business?

The main purpose of products liability coverage for a business is to cover defects in the business's products. This type of insurance is essential for businesses that manufacture, distribute, or sell products, as it protects them from claims related to injuries or damages caused by those products. If a product is found to be defective and causes harm to a consumer or damages to property, the business can face significant legal liabilities. Products liability insurance helps mitigate these financial risks by covering legal fees, settlements, and judgments related to these claims. Consequently, this coverage is a critical component for businesses to safeguard their assets and ensure they can operate without the crippling fear of product-related lawsuits.