Product liability refers to the part of your insurance policy that protects against claims of injury or damage caused by the products you use, install, or sell in your business. This includes compensation for damages, legal defense costs, and any settlement or award if your business is found liable. It's particularly relevant in the home service industry, where the quality and safety of products can directly impact customers.

Consider a scenario where you operate a fencing contractor business. You install a fence, but due to a material defect, it collapses and damages the client's property. The client decides to sue for damages. In this case, your product liability insurance would cover the legal expenses and any compensation required to rectify the damage caused by the defective product.

Understanding and having product liability coverage is essential for:

• Shielding your business from the financial repercussions of claims related to product defects.
• Providing confidence and trust to your customers in the quality and safety of your work.
• Ensuring the longevity and reputation of your business by managing potential product-related risks.