In a perfect world, products would be manufactured perfectly and safely, without defects. However, defective and unsafe products exist in the marketplace. Defects can range from something simple that can be easily fixed, to a serious problem requiring the product to be replaced. Even more serious defects could render the product unsafe and dangerous to use. California product liability insurance exists to protect the sellers or manufacturers of defective products.
Imagine a child opening a Christmas present, playing with the toy, and then getting injured because it turned out to be unsafe. If the child’s parents sued the product’s seller or manufacturer, liability insurance would pay the legal fees or the settlement awarded to the child who was hurt as a result of using the product.
If a business or seller were required to pay a settlement or legal fees due to a defective product, liability insurance would protect against the financial loss that could result. Manufacturing or selling a high-risk product would require the business or seller to obtain a larger amount of liability insurance.
In a perfect world, manufacturers would not produce, and marketers would not sell, defective and unsafe products. However, nobody’s perfect, and mistakes and bad designs occur. California product liability insurance exists to help try to make a bad situation good so that life can go on.