Whilst this is a common question it is in fact generally answered incorrectly, or at least partially so. The correct answer to the question Does product liability insurance cover defective products? is no it does not. The question itself is something of a red herring and we shall examine why.
What is product liability insurance?
It is a legal liability policy that protects the policyholder in respect of claims made against them for personal injury or property damage arising from the supply of a product. There is no requirement that the product be defective and these words are not used in the policy documentation issued by insurers as they are irrelevant to the cover.
The truth is that many claims will arise from the supply of a defective product but what the claim will rest on their being property damage or personal injury arising from the supply of that product and it being the alleged legal liability of the supplier, defective or otherwise.
So products liability does cover defective products?
No, product liability may cover the damages and legal costs in respect of claim for personal injury or property damage resulting from the supply of a defective product but it does not cover the product itself.
- Product liability insurance is not a form of product guarantee insurance.
- Product liability insurance is not product recall insurance.
These are fundamentally different classes of insurance. in some cases insurers may elect to assist in some form of product recall if they believe this can assist in the avoidance of future claims for product liability but this is not the norm.
Whilst product cover is an separate insurance cover in it’s own right it is seldom available as a standalone product. It is generally issued as an extension or additional section under a public liability insurance policy or as part of the liability cover under a broader package insurance such as commercial combined or shop insurance policy.
You can apply on-line for product liability insurance or you can call us direct to discuss your requirements with a member of our liability insurance team. You can find out more information from our main product liability insurance page.