Complex products are always going to have bugs and imperfections. That goes for cars, consumer electronics, etc.. There should be nothing special about software. Most products are sold with a disclaimer of liability for consequential damages, such as business losses due to product not working. In most cases the liability for "product not suitable for intended purpose" is limited to refund of the purchase price, which seems fair and reasonable to me, and offers adequate protection for free software. The problem is that in most jurisdictions liability disclaimers cannot protect you from consequential damages arising from safety defects, such as a software product which accidentally kills people by adjusting medical radiation dose too high in cancer therapy. In such cases you might be held liable unless you have made very clear disclaimers limiting how your software should be used. What about less serious cases such as your software product malfunctions and erases the user's hard drive, or fries a device connected to the computer? That's a tough one. Maybe the seller, distributor, and/or developer of the software could be found liable. I sure hope not, because the reality is that if such a thing is even possible, insurers are going to slap us commercial software sellers with a huge increase in liability insurance. This already happened once about 5 years ago, but fortunately the fuss died down and insurance rates went back down again.