What term describes insurance for liabilities arising from defective products provided by a manufacturer?

What term describes insurance for liabilities arising from defective products provided by a manufacturer?

• A. Product Liability
• B. Service Liability
• C. Manufacturers Liability
• D. General Business Liability

Answer: (A)

The term that accurately describes insurance for liabilities arising from defective products provided by a manufacturer is Product Liability. This type of insurance specifically covers claims that a product has caused injury, property damage, or other losses due to defects or failure to perform as intended. Product Liability serves to protect manufacturers, distributors, and retailers from lawsuits and claims arising from injuries contributed to by their products, ensuring that they are able to handle legal costs and potential settlements. While Service Liability generally covers claims arising from the services provided to clients, it does not encompass product-related issues. Manufacturers Liability is not a standard term used in the insurance industry; instead, the established term is Product Liability. General Business Liability typically covers a broad range of risks associated with running a business but does not focus specifically on products. Hence, Product Liability is the most accurate and relevant term for the context of insurance due to defective products from manufacturers.

The term that accurately describes insurance for liabilities arising from defective products provided by a manufacturer is Product Liability. This type of insurance specifically covers claims that a product has caused injury, property damage, or other losses due to defects or failure to perform as intended. Product Liability serves to protect manufacturers, distributors, and retailers from lawsuits and claims arising from injuries contributed to by their products, ensuring that they are able to handle legal costs and potential settlements.

While Service Liability generally covers claims arising from the services provided to clients, it does not encompass product-related issues. Manufacturers Liability is not a standard term used in the insurance industry; instead, the established term is Product Liability. General Business Liability typically covers a broad range of risks associated with running a business but does not focus specifically on products. Hence, Product Liability is the most accurate and relevant term for the context of insurance due to defective products from manufacturers.