If a business manufactures, sells, or distributes products, it may want to purchase product liability insurance to protect against loss due to liability for personal injuries and property damage alleged to have been suffered by someone who used or was affected by a product.

Any business in the product supply chain—a manufacturer, distributor, or retailer—may be sued on one or more legal theories generally known as product liability—including the defective design of a product (design defect); the defective marketing of a product (marketing defect or failure to warn); or the defective manufacturing of a product (manufacturing defect).

Product liability insurance is also purchased by manufacturers, suppliers, and contractors in the construction industry to protect against claims that a product used in a construction project was defective.

In Arkansas, businesses involved in the manufacturing, selling, or distribution of products should consider purchasing product liability insurance as a safeguard against potential lawsuits. This type of insurance is designed to protect businesses from financial loss due to liability for personal injuries or property damage claims that arise from the use of their products. Arkansas businesses can be held liable under product liability law for various issues, including design defects, marketing defects (such as failure to warn), or manufacturing defects. Product liability is a complex area of law where state statutes and federal regulations may apply, and the specifics can vary depending on the nature of the product and the injury caused. Additionally, in the construction industry, manufacturers, suppliers, and contractors often obtain product liability insurance to cover claims related to defective products used in construction projects. It's important for businesses to assess their risk and ensure they have adequate coverage to protect against these types of claims.