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 Pennsylvania, businesses involved in the manufacturing, selling, or distribution of products may consider purchasing product liability insurance as a safeguard against potential legal claims. This type of insurance is designed to protect businesses from financial loss due to liability for personal injuries or property damage that may arise from the use of their products. Pennsylvania law, similar to other states, allows for product liability claims based on various legal theories, including design defects, marketing defects (failure to warn), and manufacturing defects. These claims can be brought against any party in the product supply chain, including manufacturers, distributors, and retailers. Additionally, in the construction industry, product liability insurance is important for manufacturers, suppliers, and contractors to protect against claims of defective products used in construction projects. While product liability insurance is not mandated by Pennsylvania law, it is a prudent risk management tool for businesses to mitigate the financial risks associated with potential product liability claims.