This policy is also called end users benefit policy. An item has been manufactured as product and it is sold for the public for their use and in case it causes death or bodily injury or loss or damage to the end user, then the product liability policy will compensate for having suffered the pain. 

Product liability insurance protects against claims of personal injury or property damage caused by products sold or supplied through business. It is designed to help protect your business by ensuring that if manufacturing or production flaws happens to the product policy will pay legal fees and court awarded compensation.