Which type of insurance covers the business against injuries caused to customers from a product?

Get ready for the Leaving Certificate Business Test. Prepare with flashcards and multiple choice questions complete with hints and explanations to help you succeed. Ace your exam now!

Product Liability Insurance is the correct choice because it specifically provides coverage for businesses against claims and legal actions arising from injuries or damages caused to customers by products sold or manufactured by the business. This type of insurance is essential for protecting companies from financial loss resulting from defects in their products or failures to meet safety standards, which could lead to physical injury or property damage to consumers.

In the context of business operations, it is crucial for companies to have this coverage as it safeguards them against lawsuits stemming from product-related incidents, ensuring they can continue their operations without the weight of potentially devastating legal costs. This insurance typically covers legal fees, settlements, and any compensation awarded to injured parties.

Other types of insurance, such as Employer's Liability Insurance, protects businesses against claims from employees who are injured while on the job, while Public Liability Insurance generally covers claims made by the public for injury or damage occurring on business premises. Third Party Insurance usually refers to insurance protecting against claims from third parties but doesn't specifically address product-related injuries. Therefore, Product Liability Insurance is uniquely positioned to cover the risks associated with the safe use of products by customers.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy