What does product liability insurance cover?
Product liability insurance typically covers legal defense costs, settlements, and judgments resulting from claims of bodily injury or property damage caused by a product. It may also cover the costs of product recalls and related expenses
Scope
Legal liability of the insured to third parties for:
- Bodily injury to any person
- Damage to property
In respect of claims made during the period of insurance arising out of products being sold, manufactured, altered or distributed by the Insured within the territorial limits.
Limit of Liability
- This is the maximum amount which the insurer pays in case of any admissible claim under the policy.
- This limit is selected by the Insured.
- Limit of indemnity on any one occurrence and in the annual aggregate (for all claims arising out of one year).
- Defense costs are inclusive within the Limit of Indemnity.
Main Exclusions
- Liability towards own employees; (this is covered under Workmen’s Compensation Insurance).
- Loss of or damage to property in the care, custody and control of the insured; (this is covered under Property Insurance).
- Loss of or damage to property being worked upon.
- Injury, loss or damage caused by mechanically propelled road vehicles (this is be covered under Motor Insurance).
- Liability arising out of professional services rendered by the Insured (this is be covered under Professional Indemnity Insurance).
- Consequential Loss.
- Fines and penalties.
- Pure financial Loss (without any bodily injury or property damage).
What is the difference between product liability and general liability?
Product liability insurance specifically covers claims arising from injuries or damages caused by products sold or supplied by your business. This includes injuries resulting from defects in the design, manufacturing, or labeling of products & But public liability insurance covers claims for bodily injury and property damage caused by the business to third party’s during its operations
What types of products are covered by product liability insurance?
Product liability insurance can cover a wide range of consumer and commercial products, including tangible goods, equipment, machinery, food and beverages, pharmaceuticals, electronics, toys, and more. Coverage can extend to products manufactured, sold, distributed, or supplied by the insured business.
Does product liability insurance cover defective products?
Product liability insurance protects your business from customer injuries and property damage caused by defective products. That includes design defects, manufacturer defects, and marketing defects.
What is the cost of product liability insurance?
The cost of product liability insurance can vary based on several factors related to the clients business. (Higher coverage limits result in higher premiums. Most businesses opt for a general liability policy with a $1 million per-occurrence limit and a $2 million aggregate limit)
Conclusion
Product Liability Insurance in dubai is a crucial for businesses that manufacture, sell, or distribute products. It provides comprehensive coverage for legal defense costs, settlements, judgments, and product recall expenses arising from claims of bodily injury or property damage caused by products.
Understanding the scope, including the legal liability to third parties and the limit of liability, helps businesses ensure they are adequately protected.
Get in touch with us today to learn more about our insurance options, including Business All Risk Insurance, Marine Cargo Insurance, Medical Insurance, and Contractors All Risk Insurance.
