Product liability insurance offers worldwide protection hence covers legal liabilities arising out of judgement and settlement made in any country by protecting your business worldwide.
Product liability insurance covers the range of expenses occurring due to a defective product. Some of them include overseas litigation, covering exports when domestic turnover is covered, and defence costs.
Product liability insurance covers a wide range of risks to your product due to which liability may arise. These include any defects in product, packaging defect, improper use of product or wrong user manual.
Product liability policy is available at affordable premium. You can customise the cover according to business needs by choosing from various add-ons such as vendor liability cover and technical collaboration liability cover.
Running a business comes with inherent risks. You are responsible for the health of a large number of customers. You can be filed for a heavy fine if your product causes unintended damage or harm to somebody's property or body.
Most companies invest in customised insurance policies to have protection against such threats. One such policy is Product Liability Insurance. It is just like any other insurance you buy, but it caters to companies' specific risk protection needs. So, let's learn more about this insurance policy.
First, let's get clear on what is Product liability insurance.
Specialized insurance protects businesses from potential financial losses resulting from damage to their consumers. In addition, it protects from third-party claims and legal issues arising from negligence or defects in the product.
If a company's product hurts someone, that person can sue the company. In insurance, the customer is referred to as the third-party. The business is known as the first party. The second party is the policy provider.
The first party can be liable for the losses even when not directly under fault. In some cases, the court may side with the customer even if the harm was caused by their own negligence with the product.
Businesses that manufacture, distribute, or sell physical products are the ideal clients for Product Liability insurance. However, for businesses selling virtual or digital products, another insurance called Professional Liability Insurance is needed to cover their losses. These insurances fall under General Liability Insurance, which covers a wide range of product and service-related risks.
Product liability insurance is considered an effective risk management strategy for businesses.
Hence, Product Liability insurance covers a wide range of businesses.
The following features make Product Liability Insurance a critical policy for businesses. Ensure to look for these in your policy to get the best deal.
There are different types of Product Liability Insurance plans available in the market. You can also request customised plans tailored to your needs.
Product liability insurance protects the insured against claims of personal injury or damage to property damage by products sold or supplied by the insured business. The policy covers the entire sum liable to be paid as damages. The protection also covers legal defense costs. Product liability insurance covers liabilities arising from death, injury, or diseases caused by the products sold or supplied by the insured. It also covers accidental damage to property by such products.
They also offer globally acceptable policy, add-on, and limited vendor liability covers for vendors named in the policy.
Insurance companies that offer product liability insurance policies in India include the following:
The premium for Product Liability Insurance represents the payment made to obtain coverage for potential losses associated with product-related risks. This amount can vary based on factors. These factors include the type of risk, company revenue size, claims history, pricing models, and inclusion of additional coverage options.
Comparatively, Product Liability Insurance Premium costs more than other policy plans due to more costs associated with the products. However, it can benefit the company as the cost covered by the policy for compensation is much larger than its premium.
Coverage includes the aspects of compensation handled by the insurance policy. These factors may vary depending on the needs and nature of the Product Liability insurance policy.
Product Liability insurance does not cover the following:
The following steps are involved in claiming your Product Liability Insurance:
Remember that these are basic guidelines. Actual steps may differ according to the policy you choose.
We have specialized underwriters and tie-ups with international experts.
We work with all insurers to get you the best options- both in terms of price and features.
Cover notes are issued within hours of request. This documentation is sufficient for any contractual requirement.
We manage all aspects of your claim - from preparing documentation to follow-up with the insurer.
We will advice you on risk management best practices.
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