If a business manufactures, sells, or distributes products, it may want to purchase product liability insurance to protect against loss due to liability for personal injuries and property damage alleged to have been suffered by someone who used or was affected by a product.

Any business in the product supply chain—a manufacturer, distributor, or retailer—may be sued on one or more legal theories generally known as product liability—including the defective design of a product (design defect); the defective marketing of a product (marketing defect or failure to warn); or the defective manufacturing of a product (manufacturing defect).

Product liability insurance is also purchased by manufacturers, suppliers, and contractors in the construction industry to protect against claims that a product used in a construction project was defective.

In Florida, businesses involved in the manufacturing, selling, or distribution of products are exposed to potential lawsuits under product liability law. These lawsuits can be based on various legal theories, including design defects, marketing defects (failure to warn), and manufacturing defects. Product liability insurance is a risk management tool that businesses can use to protect themselves from the financial consequences of such claims. This insurance typically covers legal fees, settlements, and court-awarded damages. While not legally required in Florida, carrying product liability insurance is a prudent practice for businesses in the supply chain, including those in the construction industry, to mitigate the risks associated with claims of defective products. It's important for businesses to understand the specific terms and coverage limits of their policies to ensure adequate protection against potential product liability claims.