Protection for companies against product liability risks!
Why do I need product liability insurance?
As a manufacturer or retailer, you are responsible for the safety of your products. Defective products can lead to considerable claims for damages and affect the trust of your customers. Product liability insurance offers optimum protection against the financial consequences of these risks.
Facts & Figures
FAQ on product liability insurance
We have summarized the most frequently asked questions about product liability insurance for you in our FAQ. Our experts will also be happy to provide you with individual advice.
Product liability insurance is important because it protects companies against the considerable financial risks that can arise from product liability claims. Defective products can lead to expensive claims for damages and legal disputes that could jeopardize the company's existence without insurance.
Product liability insurance covers the following losses:
- Personal injury: costs for medical treatment, compensation for pain and suffering, loss of earnings and pension payments caused by defective products
- Property damage: repair or replacement costs for damaged or destroyed property caused by defective products
- Financial losses: financial losses incurred as a result of personal injury or property damage caused by defective products
As a rule, the following are not covered
- Damage caused intentionally
- Damage caused by gross negligence on the part of the manufacturer or dealer
- Contractual penalties and fines
- Recall costs (there are special recall cost insurances for this)
- Manufacturers: Companies that manufacture products and place them on the market
- Importers: Companies that import products from abroad and introduce them to the domestic market
- Distributors: Companies that sell and distribute products
Yes, there are specialized product liability insurance policies for various industries, such as the food industry, pharmaceutical industry, automotive industry or electronics manufacturers. These insurance policies take into account the specific risks and requirements of the respective industry.
Recall cost insurance covers the costs incurred if a defective product has to be recalled from the market. This can include costs for notifications, transportation, storage and disposal, for example.
Yes, extended liability insurance provides cover for claims that occur after the product liability insurance has ended but were caused during the term of the policy. This is particularly important if a product is still available on the market but the company has been closed or sold.
- Damage caused by intentional or grossly negligent behavior
- Damage caused by unauthorized modifications to the product
- Damage caused by products that were placed on the market contrary to legal regulations
- Damage caused by known safety defects that have not been rectified
Yes, many product liability insurance policies also offer international insurance cover, especially for companies that sell their products worldwide. However, it is important to check the exact conditions in the insurance contract.
Further insurance solutions
In addition to product liability insurance, we also offer numerous other insurance solutions that may be of interest to you.
You might also be interested in
In our newsroom you will find many articles that could be of interest to your company or institution. You can also meet our teams of experts at events or attend our webinars.
Watch out, extreme weather! Best possible protection for buildings and infrastructure
Resilience plays a central role for companies and economic systems when it comes to overcoming current and future challenges. Cedric Lichte, Head of…
Alternative models in hospital liability insurance
How to maximize the opportunities offered by self-insured retention solutions (SIR) in practice
AI in the healthcare sector
Opportunities, risks and good safeguards: interview with Ecclesia experts
