Product Liability Insurance Policy

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.

The amount of coverage your business needs depends on:

● Perceived risk from a product: You should first consider the amount of risk associated with your product. For example, a heavy machinery manufacturer is at a greater risk of being sued than a manufacturer of linens and would therefore need more Liability insurance.
● Jurisdiction/Country of exports: If you export to countries across borders with a history of awarding high damage amounts to plaintiffs, you will typically need to have product Liability insurance with higher coverage limits.

Cost of insurance

● This depends on the type of product you deal with. The higher the risk your product represents, the more expensive your premiums will be. Premiums also depend on the total turnover, countries you export to, coverage limits, policy extensions and deductibles.
● In addition, you can reduce your insurance costs by reducing your risks or by instituting certain quality control procedures at your company. Identifying, eliminating and mitigating the risks can help protect you against future losses and can also lower your premiums.

The policy is Subject to a compulsory excess of 0.25% of the AOA limit, Subject to a maximum of Rs.1,50,000 and minimum of Rs. 1,500. Opting for a higher excess on a voluntary basis qualifies you for a discount in the premium payable.