Product liability insurance protects against claims arising from what?

• A. Theft of inventory
• B. Data breach
• C. Patent infringement
• D. Bodily injury or property damage caused by product

Answer: (D)

Product liability insurance protects a business when a product it sells causes harm to someone. It covers claims of bodily injury or property damage that result from a defect in the product—whether the defect is in design, in manufacturing, or in inadequate warnings or instructions. The policy also helps cover legal defense costs, settlements, or judgments related to those claims.

The other scenarios involve risk areas outside product liability: theft of inventory is a crime or property loss issue, data breach falls under cyber liability, and patent infringement concerns intellectual property or other legal claims—not injuries or damages caused by a product.