Business insurance
What is product liability insurance?
Product liability insurance pays when a product you make, sell or distribute causes injury to someone or damage to their property, including the legal costs of defending the claim. Manufacturers, importers, distributors and retailers can all be held responsible, so each may need it.
In short
- Pays for injury or damage caused by your product.
- Covers legal defence costs as well as compensation.
- Manufacturers, importers, distributors and sellers can all be liable.
- Product recall is usually a separate cover.
Who needs product liability insurance?
Any business that puts a product in a customer’s hands. Manufacturers face the most exposure, but importers, distributors and retailers can also be named in a claim. Export contracts and large buyers often require proof of cover.
How is it different from general liability?
General liability covers harm from your premises and operations; product liability covers harm from the product itself, after it has left you. They are often arranged together. Our page on liability insurance sets out the other liability covers.
What does product liability usually not cover?
Common exclusions vary by wording. Recalling a faulty product is usually a separate cover, and the cost of replacing or repairing the product itself is generally excluded. Read your policy’s exclusions, and check that its territory matches where your products are sold.
Frequently asked questions
What is product liability insurance?
Insurance that pays when a product you make or sell causes injury or property damage, including defence costs.
Who needs product liability insurance in India?
Manufacturers, importers, distributors and sellers, especially those with export or large-buyer contracts.
Does product liability cover product recall?
Usually not. Product recall is generally a separate cover.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.