Product liability insurance offers worldwide protection. It covers legal liabilities arising from judgments and settlements made in any country, thus protecting your business globally.
Product liability insurance covers the range of expenses occurring because of a defective product. Overseas litigation, covering exports when considering domestic turnover, and handling defense costs are among these elements.
Product liability insurance addresses various risks associated with your product, leading to potential liabilities. 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 customize the cover according to business needs. Choose 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 product liability insurance quote number of customers. You can face a heavy fine if your product causes unintended bodily injury or property damage to someone.
Most companies invest in customised insurance policies to have protection against such threats. One such policy is Product Liability Insurance. This is just like any other insurance you buy, but it caters to companies' specific risk protection needs. Therefore, let us delve deeper into understanding this insurance policy.
First, let's get clear on what is Product liability insurance. Specialized insurance protects small 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 sells a product and it hurts someone, that person can sue the company. In insurance, the third-party is the term used for the customer. The first party is the term used for the business. The second party is the policy provider.
The first party can be liable for the losses even when not directly under fault. In certain instances, court may favor customer, even if the harm resulted from their own negligence with the product.
Businesses that manufacture, distribute, or sell physical products are the ideal clients for Product Liability insurance. However, businesses selling virtual or digital products require another insurance called Professional Liability Insurance to cover their losses. These insurances fall under general liability insurance, which covers a wide range of product and service-related risks.
Businesses consider product liability insurance India an effective risk management strategy.
Hence, Product Liability insurance covers a wide range of businesses. This is also necessary to protect from the loss of goodwill.
The following features make Product Liability Insurance a critical policy for businesses. Ensure to look for these in your policy to get the best product liability insurance:
Different types of Product Liability Insurance plans available in the market. You can also request customised plans tailored to your needs.
Occurrence-based plans- These are the plans that cover claims from the time of occurrence of the event. This coverage protects the company if the incident occurs during the policy period. Even if the policy has expired, you can still file the claim.
Retroactive data coverage- This policy works on a retroactive date. The date indicates the period that offers coverage for physical harm or property destruction.
Product liability insurance shields insured from claims of personal injury or property damage arising from products sold or supplied. This coverage is essential for businesses to manage the financial consequences of such claims effectively. The policy covers the entire sum that the company is liable to pay as damages. The protection also covers legal defense cost incurred. Product liability insurance covers liabilities arising from death, injury, or diseases caused by products sold or supplied by 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.
Product liability insurance companies that offer the coverage in India include:
The premium for Insurance represents the payment made to obtain coverage for potential losses associated with product-related risks. This amount can vary based on factors. Like type of risk, size of the company's revenue, claims history, pricing models, and addition of extra coverage options.
Comparably, Product Liability Insurance Premium costs more than other policy plans because of more costs associated with the products. Yet, it can be advantageous for company since policy covers a much larger cost for compensation 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 business Product Liability insurance policy.
Product Liability insurance does not cover the following:
Claiming your Product Liability Insurance involves the following steps:
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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