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The Benefits of Product Liability Insurance

Worldwide Coverage

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.

Defense Cost Cover

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.

Comprehensive Protection

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.

Affordable Premium

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.

Quick Guide to Product Liability Insurance

Product Liability Insurance

A product liability insurance indemnifies the distributors, wholesalers, and/or retailers against various losses or damages arising out of the consumption or use of products manufactured, sold or distributed by them.

As a manufacturer who is supplying products, you may have to deal with the risk of your products causing loss or damage to a third party - their property and/or the person. Here, even a minor damage could result in massive claims and financial losses.

In such a case, it is required to possess a product liability insurance policy that would safeguard your company from various claims and also provide cover for various legal costs which you would otherwise incur in defending yourself in the court.

Features and Benefits of Product Liability Insurance

Third Party Injury Cover

  • Product liability insurance in India protects the insured against the liability arising out of third-party bodily injury or death resulting directly or indirectly due to products manufactured or supplied by the insured.
  • Third party product liability insurance will also cover you if the people got sick due to toxic materials used in your product.
  • Product defect or package defect compromising the safety of the product and causing injury to the third party is also covered.

Property Damage Cover

  • Third party product liability insurance policy will cover liability and legal costs arising due to damage to the third-party property due to malfunctioning of your product.
  • Accidental damage to the third-party property due to the defective product once it has left the insured premises can be covered.
  • The policy will pay for all the costs in defending the claim and settlement costs as well.

Additional Extensions

  • There are many extensions such as global extension, limited vendor liability and technical collaborator liability extension, which can be included in the product liability insurance policy on paying a little extra premium.
  • Liability arising out of the distribution of product by named or unnamed vendors can also be introduced under the policy.
  • Product recall and product guarantee can also be introduced in the product liability policy.

Why do you need a Product Liability Insurance Policy in India?

Product liability insurance policy is needed for business owners, product manufactures and/or dealers. A product liability insurance policy can be taken by an enterprise or an individual, who can be held accountable for legal or financial liabilities against a third-party.

Say, a shampoo manufacturing company has been sued for wrongly advertising its products and causing damage to the users health. In such a situation, if the manufacturer has a product liability insurance policy handy, then the insurance provider would bear the consequent legal costs.

Hence, it is imperative for most companies such as ones manufacturing chemical products, pharmaceuticals, tobacco, foods and beverages, entertainment, etc. to have such an insurance policy. This insurance product is not mandatory but definitely has relevance and greater usage.

What is covered under Product Liability Insurance Policy?

Product liability insurance coverage offers protection to the insured against the legal liability claims arising out of third-party property damage or if they get injured by a product manufactured or supplied by the insured. The policy indemnifies the settlement costs and the defense costs, up to the sum insured of the policy. Also, business loss, recall and replacement cost of the product is also paid by the policy.

What is not covered under Product Liability Insurance Policy?

Generally, willful acts, deliberate damage and intentional activity are not covered by the policy. Any illegal activity and violation of regulatory laws are also exclusions under product liability insurance. Other exclusions under this insurance include pure financial loss such as loss of goodwill or loss of market, fines, penalties and punitive damages.

How to file a claim for a Product Liability Insurance Policy?

Claiming for a product liability insurance plan varies with insurers. But with SecureNow the process is simpler for you. First of all, you’ll have to inform us about a claim as soon as it arises by writing to us on and we’ll take it up with the insurer. Then we’ll share with you the claim for and the list of documents to be submitted. You’ll have to provide a copy of all the necessary documents to process the application along with the duly filled and signed claim form.The claim procedure involving liability insurances may take a little longer to get resolved, involving the settlement of court cases and legal jurisdiction. SecureNow will assist you in each step and help you with the claim settlement process.

Frequently Asked Questions

A Product liability insurance coverage is essential as it will be able to safeguard the insured against the legal liability claims when there is a property damage of a third-party or if they get injured by a product manufactured or supplied by the insured. Third party liabilities can give rise to a lot of unnecessary costs including legal costs and a product liability insurance will serve as a backbone to counter all such costs.
If some of the consumers of a chyawanprash brand experience stomach issues after having the product, they can sue the brand for the fault in the manufactured product. Now a product liability insurance will cover for the legal costs and/or compensations involved in the case.
Contractual liabilities are not covered under product liability insurance. Product liability insurance covers for liabilities caused to a third-party by the first-party of the policyholder.


What are the duties of Insured under product Liability Insurance?

A product liability insurance plays an important role by safeguarding the business from various claims which may arise in respect of its products and services. Though the product liability insurance offers coverage; the policyholder has to discharge some duties under the policy as the following...
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What is Product Liability Insurance?

A product liability insurance is a policy which indemnifies the distributor, wholesaler and retailer against various losses or damages which could arise out of the consumption or use of products manufactured, sold or distributed by them.

As a manufacturer who is supplying products, you always ...

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Does principle of subrogation apply to Product Liability insurance? How?

Yes, the principle of subrogation applies in the case of product liability insurance as well. If a product liability insurance company settles the claim, the insurer shall be subrogated to all of the policyholder’s rights of recovering the claim amount if the loss or damage happens due to the fault of the...
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Why SecureNow?

Deep Product Knowledge

We have specialized underwriters and tie-ups with international experts.

Cost-effective Insurance

We work with all insurers to get you the best options- both in terms of price and features.

Quick Turnaround

Cover notes are issued within hours of request. This documentation is sufficient for any contractual requirement.

Strong Claims Support

We manage all aspects of your claim - from preparing documentation to follow-up with the insurer.

Value-Added Services

We will advice you on risk management best practices.

Policy Administration System (PAM)

See all your contracts renewal information in one place. Place service requests on PAM.