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 West Virginia (WV), businesses involved in the manufacturing, selling, or distribution of products may consider purchasing product liability insurance as a safeguard against potential lawsuits arising from claims of personal injury or property damage caused by their products. This type of insurance is designed to cover expenses related to legal defense and any damages awarded in a product liability claim. In WV, as in other states, product liability claims can be based on various legal theories, including design defects, marketing defects (such as inadequate warnings or instructions), 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. The construction industry also commonly procures product liability insurance to address claims of defective products used in construction projects. While product liability insurance is not mandated by law, it is a prudent measure for businesses to protect their financial interests against the high costs associated with product liability litigation.