Product Liability cover is designed to protect you and your business if found liable for bodily injury or property damage losses that arise out of a defect in a product you sold, manufactured, or distributed
The cover can also pay if you or your business is found liable for failing to instruct, demonstrate, or provide warnings about a product you sold, manufactured, or distributed.
In our litigious society, product liability cases are on the rise year over year by consumers looking to blame all parties associated with the creation, sales , and distribution of a product they perceive to be dangerous to the public.
Who should consider Product Liability Insurance?
When an Lawyer looks for a responsible party in a product liability action or case, they do not limit the action to whom they believe is genuinely responsible, rather they take a “scorched earth” approach and name every party that might be associated with the delivery of the product to the consumer.
- The manufacturer(s) of component parts of the product
- The manufacturer, importer, or distributor of the product
- The party charged with assembly or installation of the product
- The wholesaler who provides the product to the retailer
- The retailer who transacts the sale of the product to the consumer
What does Product Liability Insurance cover?
Your policy will provide cover up to the limit you selected for all of the above-mentioned activities and the costs to defend you or your company if a law suit is brought against you by a third party. Even an action that appears to be without merit it must be responded to by an insurer's attorney. The most typical claims for product liability fall in three categories:
- Defective Manufacture
- Defective Design
- Failure to Warn or Instruct
Retailers, wholesalers, distributors and manufacturers in Hong Kong are continually at risk of a product liability action just for being associated with a product available to consumers. Knowing this, it is incumbent upon business owners to transfer these risks to a insurer and get the peace of mind that comes from having an advocate on your side if the worst should happen.
Contact your Trusted Union insurance professional to get the information you need to make an informed decision about your what product liability policy is right for you.