“Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy” As Per Wikipedia

Liability Insurance is basic for the individuals who might be held at risk for wounds to other people, or if the safeguarded party harms another person’s property and is viewed as to blame. Obligation protection strategies are taken out by any individual who claims a business, drives a vehicle, rehearses medication or law—fundamentally any individual who can be sued for harms and additional wounds. 

An item maker may buy item risk protection to cover them if an item is broken and makes harm to the buyers or some other outsider.