Product Liability Insurance

Product Liability Insurance

As a business owner, you’re responsible for every product you make and sell. If one of those products is faulty, or causes some sort of injury, your business could be held accountable for the consequences that follow. Product liability insurance can help mitigate the losses from these types of situations.

Need for Product Liability Insurance

Product liability refers to situations where a customer purchases a product, and an issue with the product causes a bodily injury or property damage to a 3rd party. Business owners can be found responsible for the damages if the source of the issue can be traced back to the small business. Some of the common issues customers encounter that result in product liability claims include:

  • Products that cause bodily injury to the customer
  • Products that cause property damage
  • Sickness caused by food or beverages

There are many different things that can cause a product issue, but 3 of the common reasons are:

  1. Design defect:This issue will be present in a product before it’s even made. It suggests that the design of the product is unsafe or faulty.
  2. Manufacturing defect:This issue suggests that something went wrong while the product was being made. Perhaps it was assembled wrong or missing an important piece.
  3. Marketing defect:This type of issue has nothing to do with the product itself, but rather how it was marketed to the customer. Incorrect labelling, incorrect safety warnings (or lack thereof) or insufficient instructions are common marketing defects.

What’s Covered?

  • Any legal liabilities to third party arising out of injury or harm due to a product sold by a business.
  • Limited Vendor’s Liability – Cover for liability arising out of sales and distribution of the insured product by named or unnamed vendors.
  • Bodily injury, illness, or accidental death to a third party
  • Accidental damage to third party property.
  • Product defect which causes injury, loss, harm, or damage to a third party or his/her property
  • Packaging defect which compromises the safety of the product and causes harm to the third party.
  • Improper use of the product, absence of warning labels/ precautions, etc. which affects the performance or quality of the product.

What’s not covered?

  • Costs arising out of recall of any product
  • Deliberate, wilful, or intentional non-compliance of any statutory provision.
  • Arising out of pure financial loss
  • Arising out of fines, penalties, punitive and/or exemplary damages

Why Us?

Product liability insurance is a must even if your role in the manufacturing, sale or distribution process is marginal. At Emedlife we ensure you are well covered for any product liability that may arise during the course of your business.

Talk to us today for all your Product Liability insurance needs at an affordable price and for reliable claims management.

For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.

Who needs Product Liability Insurance?

Companies involved in Manufacturing, sales, and distribution of products

D&O Policy protect company director or officer from legal liability arising out of actual or alleged wrongful acts in managing a company.

  1. The policy covers a wide range of litigation that could arise from customers, vendors, shareholders, employees.
  2. In addition to defence cost, it provides cover for :
  3. Investigation Cost
  4. Entity Protection against Employment Practice Liability claims
  5. Outside Entity Directorship cover,etc.


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