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When a Pokemon connects with a contact move against the wielder, there is a 30% chance of poisoning the enemy. Poison Point has a separate chance of activation on each hit of a contact multi-hit move, and can status a Pokemon multiple times if the first status is removed by the effect of Lum Berry or similar items. Poison Point is prevented by Safeguard, but not by Substitute.
The two most common users you will see are Nidoqueen and Scolipede. Both set up entry hazards and neither have a better second ability that would complement them, although Sheer Force is a choice for Nidoqueen even though it is a defensively-minded Pokemon. Poison Point can be good in a pinch but usually is just annoying rather than game-changing.
Found in Dream World