Insurance that protects a firm against claims that its product caused bodily injury or property damage?

• A. Property liability insurance
• B. General liability insurance
• C. Product liability insurance
• D. Professional liability

Answer: (C)

Product liability insurance is the protection that kicks in when a claim asserts that a company’s product caused bodily injury or damage to someone else’s property. It specifically covers the financial consequences of those product-related risks—legal defense, settlements, judgments, and often recall-related costs if a defective product was involved. This focus on claims arising from the product itself sets it apart from other liability types: general liability handles broader business risks like injuries or property damage not tied to a specific product or service, and professional or other forms cover different kinds of risks tied to specialized services. So, when the harm stems from what the company’s product did or failed to do, product liability insurance is the appropriate protection.