Which insurance protects against liability arising from damages or injuries caused by the business's products or services?

• A. Public Liability Insurance
• B. Employers Liability Insurance
• C. Product Liability Insurance
• D. Professional Indemnity Insurance

Answer: (C)

Product liability insurance is designed for claims that arise when a product you supplied or a service you provided causes harm to a customer. It covers injuries or damages linked to defects in the product (design, manufacturing, or insufficient warnings) and handles the legal costs, settlements, or judgments that follow such claims. This is exactly the protection you need when the liability stems from something you sold or delivered to customers.

Public liability deals with injuries or property damage to the public that occur during general business activities, not specifically tied to a product. Employers liability covers injuries to employees, and professional indemnity covers mistakes in the professional advice or services you provide. So, for claims arising from your products or the services you provide, product liability insurance is the appropriate cover.