Texas All Lines Adjuster Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Texas All Lines Adjuster Test with comprehensive questions and multiple-choice formats. Study effectively with hints and explanations to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does product liability insurance protect against?

Legal liability for damages caused by products
Theft of company products
Losses from product recalls
Market share losses due to competitors

The correct answer is: Legal liability for damages caused by products

Product liability insurance is designed to protect businesses and individuals from legal liability that may arise from damages caused by the products they manufacture, sell, or distribute. If a product is found to be defective or harmful and causes injury or property damage, this insurance helps cover the legal costs and any settlements or judgments against the insured party. The primary focus of product liability insurance is to address the financial repercussions of lawsuits stemming from claims that a product caused harm. This includes covering defense costs related to allegations of negligence, strict liability, or breach of warranty associated with the product. While there are other types of coverage that might address concerns about theft, product recalls, or market competition, product liability insurance specifically targets the risks and responsibilities surrounding the products themselves and the liability that can ensue from their use.