What coverage begins when a product causes injury due to a defect?

The correct answer is product liability coverage, which specifically addresses injuries or damages caused by defects in a product. This type of coverage is essential for businesses that manufacture, distribute, or sell products, as it protects them from claims related to bodily injury or property damage that arise from these defects.

Product liability coverage is designed to respond when a product malfunctions or is found to be unsafe, resulting in harm to consumers or others who use the product. This coverage can encapsulate various claims, including manufacturing defects, design defects, and failure to provide adequate warnings or instructions.

While occurrence coverage, general liability coverage, and environmental liability coverage serve important roles in risk management, they do not specifically focus on the nuances of product-related claims. Occurrence coverage generally refers to coverage activated by an injury or damage that occurs during the policy period, regardless of when the claim is reported. General liability coverage tends to address a broad range of liability issues, including premises liability and personal injury, but does not specifically zero in on product defects. Environmental liability coverage deals primarily with environmental damages and liabilities rather than product-related injuries.

Thus, product liability coverage is the most precise type of insurance for addressing situations where a product causes injury due to a defect, making it the correct answer