If your company manufactures or sells a product that has a defect and that defect causes injury or property damage to the third party, your business could be held liable. Business owners can be found responsible for the damages if the source of the issue can be traced back to their business.

Product Liability Insurance provides protection to distributors, manufacturers, retailers and wholesalers, for financial liabilities arising out of third-party injury or damage caused by the use or consumption of the product. Product liability insurance covers a wide range of risks to your product due to which liability may arise. These include any defects in product, packaging defect, improper use of product or wrong user manual. It covers a range of expenses from litigation costs, and settlement costs to crisis management costs.

There are various add-ons available such as vendor liability cover and technical collaboration liability cover which can be included in the Product Liability Insurance policy in India.  Vitality Insurance can help you identify the risks and find a suitable Product liability insurance solution with suitable add-ons as per your business needs at an optimal cost.

1. Explicit / Implied Warranty: Covers the liability arising out of improper use of the product due absence of warning labels/ precautions, incorrect warnings or insufficient instructions.
2. Vendor Liability: Liability arising out of the distribution of products by named or un-named vendors can also be included under the policy.
3. Technical Collaboration Liability: This cover provides protection to collaborators against any liability arising from defective design or process supplied by them.