What is Product Liability Insurance?
Products Liability Insurance provides an indemnity in respect of legal liability arising from products sold or supplied by the insured and may not be written in isolation - the general liability cover must support it.
Note that the products must have passed out of the control or actual physical custody of the insured or anyone in his direct service. The cover applies automatically to goods sold or supplied prior to inception providing the incident giving rise to the claim occurs during the period of insurance.
Exclusions particular to this extension:
- The actual cost or value of the goods giving rise to the claim and the recall costs
- Faulty or deficient advice intended to be given by the Insured about the product use
- The use of any design or out of the use or application by the insured of any of the products intended to be used by the insured
- Products with defects known prior to going out of the insured's control
- Products made specifically for aircraft or aerial devices
- Products or their containers sold or supplied to USA or Canada