Product Liability Insurance

Coverage Extension Exclusion


Safety and reliability of products are an important concern to consumers, sellers and manufacturers. Faulty products can be hazardous for the consumers' health and property. Business is an inherently risky proposition, as a manufacturer/trader you can fall victim to complicated and expensive law suits due to a possibility that your product could cause damage to a third party. The manufacturer/ seller of faulty products could be held liable for such damages, exposing themselves to financial losses.

This policy covers claims, which the insured becomes legally liable to pay to third parties as a result of bodily injury or property damage arising out of the use or consumption of products manufactured, sold and /or distributed by the Insured.


The policy covers all sums (including defence costs) which the insured becomes legally liable to pay as damages as a consequence of:

  • Accidental death/bodily injury or disease to any third party.
  • Accidental damage to property belonging to a third party.
  • Arising out of any defect in the product manufactured by the insured and specifically mentioned in the policy after such product has left the insured’s premises.
  • Coverage is written on a claims made basis, i.e. a Liability policy that provides coverage for an injury or loss if the claim is first reported or filed during the policy period.


On payment of additional premium, the following coverages may be selected:

  • Global extension: Policy can be extended to cover Liability arising out of judgements or settlements made in countries anywhere in the world.
  • Limited vendor’s Liability extension: Limited vendor’s Liability means Liability arising out of sale and distribution of named insured products by vendors with original warranties and instructions of use of the product specified by the manufacturers.
  • Technical Collaborators Liability Extension
  • Coverage for defence cost incurred with prior consent
  • Benefit of Retroactive Date


This policy does not cover liability arising out of or in connection with:

  • Product efficacy
  • Product recall
  • Product guarantee
  • Pure financial loss
  • Terrorism, war and SRCC
  • Any professional services deficiency
  • Personal injuries such as libel, slander
  • Fines, penalties and punitive or exemplary damages