Do you need product liability insurance?
Are you a manufacturer, distributor, supplier, or retailer who makes products available to the public? Then you are held responsible for the injuries those products cause. Product liability insurance will protect you if you answered yes to the question above.
Product liability refers to the liability of any or all parties along the chain of manufacture of any product for damage caused by that product. This includes the manufacturer of component parts (at the top of the chain), the assembling manufacturer, the distributor, the supplier, and the retail store owner (at the bottom of the chain).
Product liability claims can be based on negligence, strict liability, or breach of warranty of fitness depending on the jurisdiction within which the claim is based.
Product Liability is generally considered a strict liability offense. Strict liability wrongs do not depend on the degree of carefulness by the defendant. Translated to products liability terms, a defendant is liable when it is shown that the product is defective.
It is irrelevant whether the manufacturer or supplier exercised great care; if there is a defect in the product that causes harm, he or she will be liable for it.