Product Liability Insurance

In Plain Terms

Product liability insurance protects your business if a product you make, sell, or distribute causes bodily injury or property damage to the users/ consumers.

01
Product

You manufacture, import or sell a physical product.
02
Customer

It reaches a user or consumer.
03
Potential Damage

It causes bodily injury or damages third-party property.
04
Protection

The policy responds to the claim and the defence costs.

Key Coverages

Bodily injury: Medical bills and legal claims if a product hurts someone, such as burns.
Property damage: Repair or replacement costs if a product damages third-party property, such as fire.
Legal defence fees: Costs for lawyers, court fees, and investigations.
Cause of loss: Losses could be caused by defective manufacturing, defective design and/or failure to warn.
Product recall: In some cases, insurers may agree to provide a limited cover for product recall expenses.

Who Needs It

Both OEM and ODM manufacturers who make physical goods
Importers and wholesalers who move products down the supply chain
Retailers and online shops that sell items to the public.
Food and beverage businesses facing risks like food contamination, and food poisoning

Common Exclusions

The cost to fix or replace the defective product itself.
Product recall or market withdrawal costs (unless you buy a separate extension).
Contractual promises that go beyond standard legal liability.