Product Liability cases have greatly increased over the recent years, especially in more litigious parts of the world like the USA, Canada, Australia and Europe. Whether you’re a manufacturer, a vendor, a supplier or an exporter, you are exposed to the risk of product liability claims. In fact, any point in the chain of commerce is exposed to this risk. Here are some reasons why you need Product Liability insurance.

• Defects in the design, manufacture, packaging or labelling of the product can result in injury to the user or damage to his or her property. Other factors causing or contributing to the defect can also surface in the process of storage, transporting and handling of the product. Any one of these causes can be a valid reason for the consumer to file a liability claim against the exporter.
• The damage or injury may not even be caused by a defect in the product and yet the consumer may still file a claim against the exporter seeking payment for damages for alleged or imagined defects.
• From the mere fact that the product is available for use or consumption by the public a possibility for product liability claim exists, perhaps from a dissatisfied customer.
• You might believe your products are flawless. In some jurisdictions, even the deliberate misuse of a product can be a basis for liability claims regardless whether or not the product was used properly and for its intended purpose.

Product Liability insurance indemnifies the insured for sums which you become legally liable to pay as damages for bodily injury or property damage to third party arising out of the defective products. In addition, the policy will indemnify you for defence costs and expenses incurred in respect of a claim to which the policy applies. The limit of indemnity is inclusive of defence cost and expenses incurred in respect of a claim to which the policy applies.