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 Massachusetts, businesses involved in the manufacturing, selling, or distribution of products should consider obtaining product liability insurance as a safeguard against potential lawsuits. This type of insurance can provide coverage for claims arising from personal injuries or property damage caused by a product that a business has made available to the public. The state's laws allow for product liability claims based on various legal theories, including design defects, marketing defects (such as failure to warn), and manufacturing defects. Any party in the product supply chain, from manufacturers to retailers, can be held liable if their product is found to be defective and causes harm. Product liability insurance is particularly important in the construction industry as well, where manufacturers, suppliers, and contractors may face claims related to the use of defective products in construction projects. While Massachusetts law does not mandate product liability insurance, it is a prudent measure for risk management and financial protection.