Question

Felicity Cookware Company makes and sells kitchen products. To cover injuries to consumers if the products prove defective, Felicity should obtain:

a. life insurance.
b. group insurance.
c. health insurance.
d. liability insurance.

Answer 1

Felicity Cookware Company should obtain liability insurance to cover injuries caused by defective products, protecting the company from the financial impact of lawsuits.

Step-by-step explanation:

Felicity Cookware Company, in order to protect itself from financial responsibility due to injuries caused by defective products, should obtain liability insurance. This type of insurance is designed to cover legal costs and any awarded damages resulting from lawsuits filed by consumers who are harmed by a company's products. Unlike health insurance, car insurance, or life insurance, which respectively cover medical care, car accidents, and the death of an individual, liability insurance specifically helps businesses cover the costs related to claims of negligence or harm due to their product or services.