What is product liability insurance?

[Phantasm]

The purpose of product liability insurance is to protect the company and its partners from financial liability for injuries or property damage caused by faulty products. When manufacturing and/or selling a product, a company is required to have this type of insurance in case people are injured or property is damaged. It also has the same function when sending out any goods, including books, DVDs, CDs and other items with which a consumer may be using in their everyday life. The insurance coverage provided by this type of insurance is distributed under a policy or under the terms and conditions of the contract with the insured, either through a private insurance company or a public insurer. The cost of the insurance depends on many factors, like the nature and risk of exposure in different geographical areas, but these are usually calculated by means of premiums and taxes.