Any business which produces, distributes, imports or represents a product shall be liable for damages which may be caused by the use of its products by third parties – whether they are individuals or other businesses. Product liability insurance shall cover the liability of the insured business for any consequences it may cause to a consumer or manufacturer (physical damage/death and/or property damage) resulting from any defect in the products made available worldwide, including:
- Incorrect product design.
- Error during the construction or production stage.
- Incorrect or unclear instructions for use on the label.
- Negligence warning of potential danger.
It provides cover for:
- Losses on third-party assets/material losses
- Financial satisfaction due to mental anguish/moral damage.
- Medical expenses (doctors’ fees, examinations, medicines, physiotherapists, treatments, diseases, etc.)
- Lost profits
- Various expenses, such as medical care, use of a taxi or rental car, domestic helper, exclusive nurse, receiving improved food.