Product liability insurance (PLI) protects businesses from lawsuits in the event that a product causes bodily injury or property damage. This insurance typically covers product-related defects for manufacturers, distributors, and retailers. It’s so important, that business partners throughout your supply chain may not work with you unless you can provide proof of adequate product liability insurance and you should do the same. The most common types of claims fall under three categories 1) Design defects, 2) Processing flaws, 3) Labeling, Improper or failure to warn.