Product liability insurance
Cover for claims that a product you made, sold or imported caused injury or property damage after it left your hands, including the legal cost of defending the claim.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Third-party bodily injury caused by the insured product
- Damage to third-party property caused by the insured product
- Legal defence costs and investigation expenses
- Claims brought in the territories and jurisdictions the policy states
- Product recall expenses, where that extension is taken
- Vendors' liability for your distributors and retailers, where that extension is taken
Key features
- Limits per claim and in the aggregate for the policy period
- Territory and jurisdiction clauses, which matter a great deal if you export
- Usually written on a claims-made basis with a retroactive date, so continuity matters
- The product's own repair or replacement is not covered; the harm it causes is
- Recall costs, financial loss and defective workmanship are extensions, not automatic
- A compulsory excess applies to each claim: [DEDUCTIBLE]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us what you make or sell, your turnover by market, your quality controls, and any claims history.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Product liability insurance: FAQs
Does it pay to replace the faulty product?
No. Product liability pays for injury or property damage the product causes to others, and the legal costs. Recalling or replacing the product is separate, and recall cost can be added as an extension.
I export. Does my Indian policy cover claims abroad?
Only within the territory and jurisdiction the policy states. Selling into a market such as North America or Europe usually needs that jurisdiction added, and it is priced accordingly.
What is a retroactive date?
On a claims-made policy it is the earliest date an incident can have occurred and still be covered by a claim made now. Losing continuity resets it, so keep the policy running without a gap.
We only distribute, we do not manufacture. Do we need this?
Often yes. Under Indian consumer law an importer or seller can be pursued alongside the manufacturer, and many suppliers require their distributors to carry cover.