Product liability insurance is designed to cover any compensation you owe if someone gets injured at the hands of a faulty product that your business designed or manufactured. Product liability is different than general liability insurance in that its coverage focuses on design and manufacturing flaws.

While it’s both common and easy for sellers to assess their product as low-risk and thus forgo product liability insurance, the reality is that if you sell any kind of merchandise, you are automatically vulnerable to potential legal problems.

What does product liability insurance cover?