Product Liability


What is Product Liability Insurance?

Product liability insurance protects you against allegations of personal injury or property damage caused by products sold or supplied through your business. It can help you protect your business against legal or court costs in the event where any such claims occur.

Product Liability insurance is a claim that comes into effect under any of the following circumstances:

(i) Manufacturing defects and flaws in the production process resulting in an unsafe product
(ii) A design defect where there is an inherent lack of safety.
(iii) The absence of warnings or inadequate warning on the product about the proper use and the risks of using or handling the product without adequate care.

Who is covered under Product Liability Insurance?

The insurance protects the manufacturers, distributors, suppliers, retailers or anyone in the supply chain against legal liabilities like loss and damage to third party property, injuries etc. In such cases, the product liability insurance protects the manufacturer from the claims resulting from death, injury or accidental damage to the person or the property of the third party (customer).

The claim under Product Liability – Product liability claims are based on state laws and brought under the theories of negligence, strict liability, or breach of warranty It means that the manufacturer is liable regardless of the fact whether there was negligence on the part of the customer or not. Taking a lenient view of the injured customer’s claim, there is no onus on the customer to prove the acts of omission and commission on the part of the manufacturer in the design or manufacturing process.

What are the risks covered?

In general, Product Liability Insuranceis designed to cover your liability at law and compensate for: bodily injury to or disease contracted by any person. loss of or damage to material property. It should also be noted that a claim arises not just due to the actual product, but also the unsafe container, packaging, any other construction, installation or testing facility etc. The policy covers the claimant’s costs and one’s own legal expenditure.

One of the significant advantages of the policy is that incidents that happened at an earlier date or previous policy term (retroactive period) are also coveredwhen the policy is under continuous renewal.


New Age Insurance Brokers offer tailor-made solutions to suit the individual and unique requirements of each business;
The risk assessment is professional and perfect;
Experienced loss control and prevention engineers;
Proactive claims services.

What are the exclusions?

The following are excluded from the purview of Product Liability Insurance. These are; product recall, punitive damages,and fines, Liabilities under the MV Act., Professional Indemnity, Employer liability, gradual pollution, acts of terror, war, sabotage etc.