Businesses and risks go hand in hand. Some hazards are common to all organizations, but others are exclusive to the manufacture of products. Manufacturers that manufacture and sell things are susceptible to the chance that the product they sell can cause damage to a third party's property or person.
What happens if a client is harmed or wounded while using a company's product? In theory, nothing prevents the harmed party from filing a big claim against the manufacturer.
A little flaw in the product might expose the manufacturer to a massive lawsuit. Accidents happen, no matter how well-designed the items that an organization makes or sells - and it is critical for manufacturers to be appropriately insured against such risks.
Major issues with the items offered can have a significant influence on the manufacturer's reputation, profitability, and even survival.
A Product Liability Insurance policy can protect businesses from such risks. Product Liability Insurance protects a manufacturer if a product created or supplied by the insured causes bodily harm or physical damage to another person or property.
Even if a corporation did not create the goods, it may be obligated to pay compensation. If the firm's name is printed on the goods, or if it repairs or modifies the product, the company may be held accountable.
The expense of such liability might be significant enough to threaten the company's viability. You won't have to worry about any financial troubles linked with a lawsuit if you have the correct Product Liability coverage.
Product Liability Insurance protects firms against a variety of risks. It applies to manufacturers, marketers, suppliers, and merchants who are held accountable to pay legal fees for buyer losses, injuries, or property damage if the customer discovers faulty or damaged goods.
It provides security on both sides, ensuring the safety of both the business and its customers, as customers can sue the culpable party for damages and legal expenses. The majority of non-life insurers in India provide Product Liability Insurance coverage.
As a result, it is advisable to obtain all necessary information on the area of coverage of such a policy before picking the insurance that best meets one's specific needs.
The first thing a firm (maker) must understand is that there are several liability insurance policies available, and Product Liability Insurance is one of them.
A basic Product Liability insurance policy may be supplemented with a variety of alternatives, much like other business insurance products. A thorough consultation with a lawyer might be beneficial in determining the best Product Liability coverage for your company's needs.
Product Liability Insurance is an important protection for product makers, retailers, and distributors in India. The coverage not only protects firms from claims, but it also pays legal fees connected with defending against these claims.
This policy covers any sums (including defense costs) that the insured is legally obligated to pay as damages as a result of:
- Any third-party's accidental death, bodily harm, or sickness; or
- Third-party property damage caused by accident
...arising from any flaw in the product manufactured/sold/designed/distributed/serviced/altered by the insured and expressly named in the policy after such product has left the insured's premises.
This policy offers coverage on a claims-made basis, which means that it is a liability insurance that provides compensation for an accident or loss if the claim is first reported or filed within the policy term.
The policy, on the other hand, provides the benefit of a retroactive date, which is a date specified in a claims-made Liability insurance declarations part as the start date of occurrences covered by the policy.
The retroactive date is intended to cover claims arising from occurrences that occurred previous to the current insurance term. Renewal claims-made policies normally bear the retroactive date of the insured's initial policy. When this is not done, there is a coverage gap.
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