Product Liability Insurance
Product Liability Insurance provides coverage to manufacturers, distributors, suppliers, and retailers against claims for bodily injury or property damage caused by products they design, manufacture, sell, or distribute. It protects businesses from legal liabilities arising from defects or hazards in their products.
Add-On
Completed Operations Coverage - Extends coverage to include liabilities arising from products even after they have been sold or distributed by the insured, such as claims for defects discovered after the product has been in use.
Coverage for Product Recall Costs - Provides coverage for expenses associated with product recalls, including notification costs, shipping costs, and disposal costs.
Excess Liability Coverage - Offers additional coverage limits above the primary product liability policy limits in case of large claims or catastrophic events.
Manufacturing Defect Coverage - Protect against claims related to defects that occur during the manufacturing, making the product unsafe.
Design Defect Coverage - Protects against claims related to inherent design flaws in the product that becomes dangerous or unsuitable.
Exclusions
1. Deliberate or intentional acts of the insured that result in injury or property damage are typically excluded from coverage.
2. Liabilities assumed by the insured under contract, unless expressly covered in the policy, may be excluded.
3. Damages to the insured’s own products or property due to defects or hazards may be excluded, as product liability insurance focuses on third-party liabilities.
4. Damages or liabilities resulting from acts of war, terrorism, or civil unrest are typically excluded from coverage.