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 Virginia, businesses involved in the manufacturing, selling, or distribution of products may consider purchasing product liability insurance as a safeguard against potential lawsuits arising from claims of personal injury or property damage caused by their products. This type of insurance is designed to cover expenses related to product liability issues, which can include design defects, marketing defects (such as failure to warn), or manufacturing defects. Virginia's product liability laws allow for claims to be made under these theories, and any party in the product supply chain can be held liable. This includes manufacturers, distributors, and retailers. The construction industry also commonly procures product liability insurance to address claims of defective products used in construction projects. While product liability insurance is not mandated by Virginia state law, it can be a critical component of a business's risk management strategy, providing financial protection in the event of a lawsuit.