Which type of insurance is associated with covering liability for products sold?

Prepare for the CII Certificate in Insurance with the Packaged Commercial Insurances (IF8) Test. Study with comprehensive multiple choice questions and detailed explanations. Master your exam!

Products liability insurance is specifically designed to protect businesses from claims arising from injuries or damages caused by products they have sold. This type of insurance covers the legal costs and any settlements associated with lawsuits claiming that a product is defective or has caused harm.

In contrast, home insurance typically covers residential properties and personal belongings along with certain personal liabilities but does not specifically address liabilities associated with products that a business sells. Auto insurance is focused on providing coverage for vehicles and personal liability resulting from vehicle operation, while health insurance covers medical expenses for individuals rather than liabilities stemming from the sale of products. Therefore, products liability insurance is the most relevant type of coverage for protecting businesses against risks associated with their products.

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