Definitions for "Products liability"
(1) A named insured's liability for claims alleging loss caused by a product sold, handled, or distributed by a named insured. (2) Term used to describe the legal liability of commercial sellers and manufacturers to compensate buyers, users, and bystanders for damages or injuries suffered because of a defective condition that makes their product unreasonably dangerous.
the claim of negligence involving the products exposure usually is based on one of the following: improper product design, improper product assembly, failure to inspect product, failure to warn of dangerous characteristics, deceptive advertising, failure to foresee possible misuse.
Liability to third parties arising out of goods supplied, for example, if someone falls sick after consuming your food product. This is an exception under a Public Liability policy and therefore to cover for this, you need to be separately insured or have your Public Liability policy extended.