2026 Nevada Revised StatutesChapter 695E – Liability Risk RetentionNRS 695E.090 “Product liability” defined.

Statutory Text

“Product liability” means liability for damages because of any personal injury, death, emotional harm, consequential economic damage or damage to property, including damages resulting from the loss of use of property, arising out of the manufacture, design, importation, distribution, packaging, labeling, lease or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of that person when the incident giving rise to the claim occurred.

(Added to NRS by 1987, 1329)

NV Rev Stat § 695E.090 – Last Verified February 2026

Plain English Explanation

Under Nevada law, “product liability” refers to the legal responsibility a person or company can face when a product causes harm to someone else. NRS 695E.090 defines this term specifically in the context of risk purchasing groups and liability coverage.

The law covers a wide range of harm that a product can cause. This includes physical injuries, death, emotional distress, and damage to someone’s property. It even covers situations where a person loses the use of their property because of a defective or dangerous product, which can cause financial losses even without visible physical damage.

Product liability can arise at many different stages of a product’s life. A company can be held responsible based on how a product was manufactured, how it was designed, how it was packaged or labeled, and how it was distributed or sold. Even a company that simply leases or imports a product can potentially face product liability claims under this definition.

There is one important exception built into the law. If the person being sued actually had possession of the product at the time the harmful incident occurred, they are not covered by this definition of product liability. In other words, the law is focused on holding businesses in the supply chain accountable, not someone who simply happened to own or control the product when something went wrong.

This definition matters because it sets the boundaries for what kinds of claims qualify as product liability under Nevada law, which affects how insurance and legal protections apply to businesses involved in bringing products to consumers.

Frequently Asked Questions About NRS 695E.090

What is product liability in Nevada?

Product liability in Nevada is the legal responsibility that manufacturers, designers, distributors, importers, packagers, labelers, and sellers can face when their product causes personal injury, death, emotional harm, property damage, or financial loss to another person. Nevada law defines this term under NRS 695E.090 to clarify which types of claims qualify as product liability for insurance and legal purposes.

Who can be held liable under Nevada product liability law?

Many different parties in a product’s supply chain can be held liable under Nevada law. This includes the original manufacturer, the designer, the company that imported or distributed the product, and even the business that packaged, labeled, or sold it. A company that leases a product to customers can also face product liability claims. The key factor is whether that party played a role in getting the product into the hands of consumers.

What kinds of harm are covered under Nevada’s product liability definition?

Nevada’s definition covers a broad range of harm. A person can bring a product liability claim for physical injuries, wrongful death, emotional distress, damage to their property, and financial losses that result from losing the use of their property. This means a defective product does not have to cause physical injury alone to trigger a product liability claim.

Does product liability apply if someone owned the product when the incident happened?

Not under this specific definition. Nevada law carves out an exception for any person who had possession of the product at the time the harmful incident occurred. This exception exists to keep the focus of product liability on businesses in the supply chain rather than on the end user who simply had the product in their hands when something went wrong.

Why does Nevada define product liability in its insurance statutes?

Nevada defines product liability within its insurance laws because the definition determines what types of claims are covered under certain liability insurance policies, particularly those connected to risk purchasing groups. Without a clear legal definition, there could be disputes over whether a specific claim qualifies for coverage. By spelling out exactly what product liability means, the law gives businesses and insurers a consistent standard to follow.