Product liability is an interesting subject since it exposes manufacturers and retailers to a certain amount of risk in a situation where the consumer is mostly consuming the product. Whether this is an automobile, a toaster, a baby crib, or any other item that can be manufactured; often there are certain risks associated with being within certain business categories.
If you are a business owner I recommend looking into your insurance policy to make sure the agent who set you up covered the area of product liability. Sometimes the policy is not adapted for your specific business and with out your active involvement you could be exposing your business to some serious drama.
Below is an excerpt from an article regarding product liability insurance that I stumbled upon...
"A proficient insurance agent will not just write a contract at the order of the company. As a substitute, he/she will evaluate the volume and nature of the company, including the kinds of products they sold through diverse outlets. After the estimation and categorization of the business and its merchandise according to ideology of the protection company, a quotation of the exposure that includes the premium and terms of payment accessible to the company. The insurance will remain efficient, for as long that the business conforms to the conditions that rule the conformity and does the planned payments of premium."
Source: http://benefitofinsurance.blogspot.com/2011/01/product-liability-insura…
Let me know what you think about this type of insurance. It's not something that people talk about too frequently.