Product Liability

Overview

Product liability refers to a manufacturer, seller, vendor, distributor being found legally liable for placing defective product or merchandise into the marketplace and hence responsible for the harm it causes.  It is a risk that potentially can affect everyone in a distribution chain.

Liability attaches when defects that result in bodily injury or property damage

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Scope

Protection against financial damages arising from

  • Manufacturing production flaw
  • Design defect
  • Defective warnings or instructions
  • Strict liability
  • Marketing and distribution

Cover Benefits

  • Legal fees for the insured
  • Medical costs, compensatory and business damages awarded to the injured party.

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