Which type of insurance is commonly associated with product-related claims?

The correct answer is product liability insurance, which is specifically designed to protect businesses and manufacturers from claims that arise out of the use of their products. When a consumer is injured or suffers damages as a result of a product malfunction, defect, or insufficient instructions on safe use, product liability insurance provides coverage for legal defense costs and any settlements or judgments that may arise from such claims.

This type of insurance is crucial because it addresses the unique risks associated with selling goods to the public, thereby ensuring that manufacturers and retailers can defend themselves against legal actions taken by consumers. It helps not only to cover financial losses but also to maintain the company’s reputation in the marketplace by allowing them to address claims in a structured manner.

Other insurance types mentioned serve different purposes: public liability insurance generally covers third-party bodily injury or property damage but is broader and does not focus specifically on products. Workmen's compensation insurance covers employees injured on the job, providing medical benefits and wage replacement, which is unrelated to product claims. General liability insurance encompasses a wider range of incidents, including property damage and bodily injury unrelated to product defects. Thus, while they provide important coverage, they do not specifically address the nuances of claims that arise from defective products, making product liability insurance the most relevant choice