Product Liability insurance is a form of general liability insurance aiming to protect business from acquiring financial and legal risk because of the quality of their products sold. It covers the cost of indemnifying anyone who is injured, sustains damage to property due to a faulty product that your business designs, manufactures, processes, or distributes. Your business may be held legally responsible for faulty products even if you did not manufacture them. Many businesses take out policies that cover them for claims based on the exposure of the business.