Product liability insurance
With product liability insurance, you protect yourself from unexpected expenses related to losses incurred by other persons as a result of the product you market.
Product liability insurance
If damage has been caused to another person due to a defect in the marketed product, ERGO product liability insurance will help to cope with the claim for damages. In the event of an insured event, product liability insurance covers the claims for property damage agreed in the terms and conditions of insurance, as well as legal assistance and judicial expenses related to the insured event and agreed in advance with ERGO.
Mitigating the risks related to product liability with insurance could be considered by manufacturing companies, as well as resellers, including stores, for whom reliability and excellent client relations are important.
Wide insurance cover
ERGO product liability insurance provides a wide insurance cover to mitigate the risks that may arise from defects in various products.Client-based solutions
When concluding ERGO product liability insurance contracts, we proceed from the specific client, the risks related to their activities, and the need to mitigate such risks.Competent team
ERGO has a risk management, sales, and claims handling management team with long-term, diverse, and international experience.What is covered under ERGO product liability insurance?
Liability insurance is essentially all-risk insurance, i.e., in the event of an insured event, such agreed damage is indemnified that is not excluded. Thus, it is imperative to read the terms and conditions referred to in the contract, especially the exclusions section, as well as the special terms and conditions in the policy, and make sure that the insurance contract meets your expectations and includes the necessary covers for you. The main types of product liability insurance covers are listed below, including a list of the types of property damage that ERGO generally indemnifies under product liability insurance.
Product liability
A product liability insurance contract has to list all the products or product groups that you market and want cover for. For example, the following products can be insured with product liability: clothing, food products, kitchen utensils, furniture, gardening tools, household goods, etc.
Personal injury
Personal injury is the act of causing bodily injury or death to an injured party. The medical expenses of the injured party, damage caused by temporary incapacity for work, damage caused by permanent incapacity for work (partial or total incapacity for work), loss or reduction of dependant maintenance, and funeral expenses are to be indemnified.
Property damage
Property damage is the destruction or physical damage (collapse, breakage, deformation, etc.) of an item belonging to an injured party. In the context of property damage, reasonable and necessary expenses for repairing or replacing the item with an equivalent one will be indemnified.
Damage caused by the non-conformity of an item (e.g., the item is of the wrong size) is not considered to be a loss of property if the item has not been physically destroyed or damaged.
Additional expenses incurred as a result of personal injury and property damage
Additional expenses incurred as a result of personal injury and property damage (consequential financial loss) are, for example, the cost of a taxi ordered to take the victim to the doctor or the cost of renting a replacement space for a company damaged by a fire.
Legal assistance and judicial expenses
ERGO will indemnify legal assistance and judicial expenses related to the insured event and agreed in advance with ERGO.
What is covered under ERGO product liability insurance?
Liability insurance is essentially all-risk insurance, i.e., in the event of an insured event, such agreed damage is indemnified that is not excluded. Thus, it is imperative to read the terms and conditions referred to in the contract, especially the exclusions section, as well as the special terms and conditions in the policy, and make sure that the insurance contract meets your expectations and includes the necessary covers for you. The main types of product liability insurance covers are listed below, including a list of the types of property damage that ERGO generally indemnifies under product liability insurance.
A product liability insurance contract has to list all the products or product groups that you market and want cover for. For example, the following products can be insured with product liability: clothing, food products, kitchen utensils, furniture, gardening tools, household goods, etc.
Personal injury is the act of causing bodily injury or death to an injured party. The medical expenses of the injured party, damage caused by temporary incapacity for work, damage caused by permanent incapacity for work (partial or total incapacity for work), loss or reduction of dependant maintenance, and funeral expenses are to be indemnified.
Property damage is the destruction or physical damage (collapse, breakage, deformation, etc.) of an item belonging to an injured party. In the context of property damage, reasonable and necessary expenses for repairing or replacing the item with an equivalent one will be indemnified.
Damage caused by the non-conformity of an item (e.g., the item is of the wrong size) is not considered to be a loss of property if the item has not been physically destroyed or damaged.
Additional expenses incurred as a result of personal injury and property damage (consequential financial loss) are, for example, the cost of a taxi ordered to take the victim to the doctor or the cost of renting a replacement space for a company damaged by a fire.
ERGO will indemnify legal assistance and judicial expenses related to the insured event and agreed in advance with ERGO.
What does ERGO product liability insurance indemnify as an additional cover?
In product liability insurance, you can choose different additional covers. It is also possible to agree with ERGO on the omission of some of the exclusions set out in the terms and conditions in order to receive the insurance cover that is most suitable for you.
Additional product recall cover
If it turns out that a defective product has caused damage or is likely to cause harm, that product should be recalled from the market. The costs associated with this process can be insured with additional product recall cover.
Dangerous objects
The insurance terms and conditions exclude the so-called dangerous products, such as medical devices, milk or egg powder, products containing asbestos or PFAS, medicines, aircraft and watercraft, etc. A more detailed list is given in the insurance terms and conditions referred to in the contract.
What does ERGO product liability insurance indemnify as an additional cover?
In product liability insurance, you can choose different additional covers. It is also possible to agree with ERGO on the omission of some of the exclusions set out in the terms and conditions in order to receive the insurance cover that is most suitable for you.
If it turns out that a defective product has caused damage or is likely to cause harm, that product should be recalled from the market. The costs associated with this process can be insured with additional product recall cover.
The insurance terms and conditions exclude the so-called dangerous products, such as medical devices, milk or egg powder, products containing asbestos or PFAS, medicines, aircraft and watercraft, etc. A more detailed list is given in the insurance terms and conditions referred to in the contract.
Examples of product liability insurance insured events
To better understand product liability insurance, here are some examples of insured events.
Fish product
A client buys a juicy piece of butterfish in the store. However, the packaging of butterfish did not have a warning that it could cause health problems under certain conditions. The client enjoys the butterfish at home and then ends up in the hospital because they did not know that they had to be careful as there was no warning on the package. This is a case of personal injury.
Outdoor furniture
A company is marketing summer furniture. A client buys folding chairs for sitting in the garden. No weight limit is indicated on the chair. The client sits on a chair and it breaks. The client is seriously injured, as well as the client’s dog, who was sleeping under the chair at that moment. There is personal injury (client) and property damage (dog).
Camping supplies
A client wants to go hiking and buys a battery-powered forehead lamp for the darkest time. The client charges the battery before going on a hike. The battery is defective and causes a fire. Fortunately, the fire is detected well in advance and major damage is prevented, but still the interior decoration of the client’s home has been damaged. This is a case of property damage.
Jam
A client produces jam. This is marketed both to the consumer and to another manufacturer who adds jam to yogurt. The yogurt maker discovers that the jam has started to ferment. This is a case of property damage and the defective product has to also be removed from the reach of consumers, so the cost of recalling the product will be incurred.
Examples of product liability insurance insured events
To better understand product liability insurance, here are some examples of insured events.
A client buys a juicy piece of butterfish in the store. However, the packaging of butterfish did not have a warning that it could cause health problems under certain conditions. The client enjoys the butterfish at home and then ends up in the hospital because they did not know that they had to be careful as there was no warning on the package. This is a case of personal injury.
A company is marketing summer furniture. A client buys folding chairs for sitting in the garden. No weight limit is indicated on the chair. The client sits on a chair and it breaks. The client is seriously injured, as well as the client’s dog, who was sleeping under the chair at that moment. There is personal injury (client) and property damage (dog).
A client wants to go hiking and buys a battery-powered forehead lamp for the darkest time. The client charges the battery before going on a hike. The battery is defective and causes a fire. Fortunately, the fire is detected well in advance and major damage is prevented, but still the interior decoration of the client’s home has been damaged. This is a case of property damage.
A client produces jam. This is marketed both to the consumer and to another manufacturer who adds jam to yogurt. The yogurt maker discovers that the jam has started to ferment. This is a case of property damage and the defective product has to also be removed from the reach of consumers, so the cost of recalling the product will be incurred.
