Define "products liability insurance."

Products liability insurance specifically provides coverage for claims arising from injuries or damages that can be traced back to a product manufactured, sold, or distributed by a business. This type of insurance is essential for businesses that produce goods, as it protects them against lawsuits that may stem from defects in their products, improper labeling, or inadequate instructions that could lead to harm. The coverage ensures that if a consumer is injured or their property is damaged due to a product malfunction or defect, the business can manage the financial implications arising from such claims.

The other options do not align with the definition of products liability insurance. For example, coverage for employee injuries during manufacturing relates to workers' compensation insurance, which protects employees injured at work, not liability arising from product defects. Coverage for property damage caused by machinery would typically relate to general liability or equipment insurance, focusing on property rather than product-related injuries. Finally, insurance for loss of intellectual property does not pertain to product liability at all, as it deals with the protection of intangible assets rather than physical products and their associated risks.