Product Liability is one’s legal liability to compensate for injury or damage sustained by another person caused by defective products supplied, distributed or sold.

Liability for defective products may arise as a result of negligence in the process of manufacture, design, storage, packaging or even marketing including product information such as misrepresentation, failure to give warning or instruction of use.

Product Liability Insurance provides indemnity to manufacturer, distributor or supplier of products against the aforesaid potential liability exposure. A proposer would have to select an appropriate limit of indemnity (Sum Insured) that may commensurate with the kind of potential liability exposure. The territorial limit of the cover would depend on the market to which products are exported or for which they are intended.

Product Liability indemnifies the insured against all sums which the insured shall become legally liable to pay as damages in respect of Occurrences happening anywhere within the Territorial Limit in respect of Bodily Injury or Loss of or Damage to property arising out of claims first made in writing against the insured during policy period as a result of an Accident after the Retroactive Date.

In addition to damages, the Company will indemnify the Insured for those Sums which the Insured shall pay as Legal Cost and Other Expenses, provided the maximum indemnity for Legal Cost and Other Expenses shall Not exceed the Limit of Indemnity.