Product Liability Insurance

Business establishments, manufacturing units such as chemicals, tobacco, medical products, food, recreational products and others whose products are widely marketed are prone to legal claims from the consumers and third parties and the claim amount involved is very huge.   Hence, it is always suggested to take an insurance protection for such contingencies and the Product Liability policy covers this liability.

Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause.

Product liability insurance protects you in case a product you produce or provide causes harm to a user or a user’s property. A “product” is anything that is tangibly used, touched, or consumed. This type of insurance is recommended for every business that manufactures a product, but is especially important for companies that produce food, clothing, toys or anything else that could conceivably cause harm to someone.

If you sell, supply or deliver goods, even in the form of repair or service, you may need cover against claims of goods causing injury or damage.

This insurance is intended to provide an indemnity to the insured (upto the limit of liability) in the event of a claim being brought against him. This may be caused by anything harmful or defective in the products sold or supplied by the insured in connection with the business specified. The Company in addition will reimburse all costs and expenses incurred with its written consent defending such a claim for compensation. The insurance will however not cover the cost of removing replacing or repairing defective products or loss of use thereof.

For the purpose of determining the indemnity granted:

  • Injury shall mean death bodily injury illness or disease of or to any person.
  • Damage shall mean actual and / or physical damage to the atmosphere or of any water land or other tangible property.
  • Pollution shall mean pollution or contamination of the atmosphere or of any water land or other tangible property.
  • Product shall mean any tangible property after it has left the custody or control of the Insured which has been designed specified formulated manufactured constructed installed sold supplied distributed treated serviced altered or repaired by on behalf of the Insured.
  • Accident shall mean a fortuitous event or circumstance which is sudden unexpected and unintentional including resultant continuous intermittent or repeated exposures arising out of the same fortuitous event or circumstances.