Product Liability2018-08-04T13:11:02+08:00

Commercial Insurance

Product Liability

What is product liability insurance?

Product liability insurance protects companies in event that the product that their business designs, manufactures or supplies injure someone or cause property damage.

What does product liability insurance covers?

Product liability insurance covers compensation claims and legal defence cost if someone sues you because they have been injured or their property has been damaged by your product.

In the case of a bodily injury or property damage claim that is made against you, your product liability insurance could cover both the compensation pay-out and the legal fees, up to the policy limit.

If a product injures someone or damages a 3rd party property, the heaviest responsibility lies with the manufacturer. However, even if you don’t manufacture the products you sell, there may still be circumstances in which you could be held responsible. For example, if your products bear the name of your company, or if the manufacturer can’t be track down or has gone out of business.

Product liability insurance covers two types of damages:

Bodily Injury – In the event that someone is wrongfully injured by your product, product liability insurance can cover the cost of medical care, lost income, restitution for death and legal defence cost.

Property Damage – In the event that property is damaged due to your product, product liability insurance can cover the value of physical damage, repairs or replacements, lost profit and legal defence cost.

Essentially, you are legally liable for any damage that such products cause to the customers of these products.

Unsure if you have exposure to product liability risk? Contact us today at 6238 3616 or email: for a non-obligatory assessment.