This is not a very new addition to the insurance market. Product liability insurance is helpful from a number of years, but its use is increased in past few years because of the increased exposure of wholesalers, manufacturers and retailers. They know that claim made against their business from any of their clients will not only make them pay additional costs but will also affect their good reputation.
Businesses that manufacture or supply the manufactured products can avail this type of liability insurance policy.
There is always a risk that a product might not be suitable to everybody. It may be allergic to someone or causes any physical damage due to wrong use. In any case of damage, the manufacturer is at a great risk of getting caught in a claim made by the purchaser.
To avoid such circumstances, product liability insurance is present, which offers you a great protection against all the expenses that are incurred in the handling of a claim including the litigation charges. Choosing best insurance policy can, however, be complicated, but you can make this decision easy by hiring a lawyer and not relying only on the insurance agent. Apart from legal complications, also see the premium amount that you will have to pay on a regular basis. Do not go for an insurance policy that can become a burden on you in the future.