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 Wisconsin, businesses involved in the manufacturing, selling, or distribution of products should consider purchasing product liability insurance as a safeguard against potential lawsuits arising from product-related injuries or property damage. This type of insurance can provide coverage for claims based on various legal theories of product liability, such as design defects, marketing defects (including failure to warn), and manufacturing defects. Wisconsin law, like that of many other states, allows for parties within the product supply chain to be held liable for damages caused by defective products. This means that manufacturers, distributors, and retailers can all potentially face legal action if a product is found to be unsafe or causes harm. Additionally, in the construction industry, contractors, suppliers, and manufacturers often obtain product liability insurance to protect against claims of defective products used in construction projects. While product liability insurance is not mandated by Wisconsin state law, it is a prudent risk management tool for businesses to minimize financial exposure from potential lawsuits.