Chapter 13 – Product Liability Insurance

Product Liability Insurance indemnifies the insured against all sums which the insured becomes legally liable to pay in respect of accidental bodily injury or illness to third parties, and accidental loss of or damage to third party property, arising out of the use, misuse, consumption, or handling of insured products or goods.

Whether you are a manufacturer, a vendor, a supplier, or an exporter, you are exposed to the risk of product claims. In fact, any link in the chain of commerce is exposed to the risk. That means you as an importer may also face claims from your customers in your home country.

Product liability claims typically arise from real or alleged defects in design, manufacturing, labeling, warnings and warranties, and packaging. Other causes may arise from the storage, transportation, or handling of your products.

You may believe that your products are flawless. But have you thought about misuse? In some jurisdictions, even the deliberate misuse of a product can be a basis for a liability claim. Therefore, you may want to check with one of your insurance companies about Product Liability Insurance they can offer to you. This may be especially important if you are considering importing electrical or electronic goods.