Texas All Lines Adjuster Practice Test

Which type of liability protects against damages caused by product use?

1. Product liability

2. Employers' liability

3. Public liability

4. Worker's compensation

The correct answer is: Product liability

Product liability is specifically designed to protect consumers and users against damages and injuries that arise from the use of a product. This type of liability holds manufacturers, distributors, and retailers accountable for any defects in their products that might cause harm. When a product is found to be defective—whether due to manufacturing flaws, design faults, or inadequate instructions or warnings—product liability laws provide recourse for any resulting damages suffered by users. This legal framework is crucial in ensuring that companies maintain safety standards and take responsibility for the products they sell. It serves not only as a means of compensation for injured parties but also incentivizes businesses to implement rigorous safety measures throughout their production processes. Understanding product liability is essential for those in the insurance and legal fields, as it plays a significant role in consumer protection and the accountability of businesses in the marketplace.