What is Product Liability Insurance?
The insurance covers importers, manufacturers, and distributors against claims by third parties for property/bodily damage caused by product failure.
Important Highlights for Product Liability Insurance?
- The definition of a product under the policy is from the moment the product leaves the possession of the insured. For example: if it is a product that needs to be installed by the insured and is damaged during installation, it is not certain that the policy will cover it because it will be possible to claim that the product is still in possession of the insured.
- The policy covers only bodily/property damage caused by the product. That is, the financial damage is excluded from the policy.
- The policy can be drawn up on both a claim and an event basis.
- The insurance premium is determined according to the insured’s expected cycles and the type of activity.
Lamda Experts’ Tips for Insurance
In order not to fall through the cracks, make sure to take out a third-party policy as well. Better under the same policy or with the same insurer.
The addition of coverage for recall expenses under the policy should be considered. So, in the event of a defect for which a recall must be made, the expenses associated with the recall will be covered.
To reduce the costs in the underwriting process, you can make a conservative assessment of the expected income and request that the premium be escrowed. So, if the income exceeds the expectation at the time of renewal, the insured will make up the difference.
LAMDA specializes in arranging product liability insurance, which is personally adapted to the business activity and the nature of the business. We specialize in finding unique and creative solutions for a wide variety of companies and businesses.