A liability insurance plan for products is appropriate for all industries where the need for paying damages on account of defective products may arise. There are some features of this policy that cannot be overlooked, these are listed below:
- The policy pays for costs that the insured is lawfully responsible to pay as a result of unintended death or injury, including damage to third party property due to any fault in the product manufactured.
- Exports to other countries can be covered, and domestic sales are also of course covered.
- Products manufactured by accredited manufacturers on their own trade name can also be covered under the same policy.
There are also some benefits involved, these include.
- Claims as a result of accidents during the policy period due to defects in the product can be covered by the insurer.
- It covers injury to third party and contamination liability on account of products covered.
The main reason for this type of policy is simply to guard against liability. In case a product is sold, and it is found to be unsafe, the seller can avoid expensive consequences in case a customer is injured from it in some way. It can also provide extra guarantees, in case someone finds the product defective, the company can avoid a potential lawsuit or charge of parody.
The company can help ensure that the product is safe and meets the consumers’ needs. If an occasion arises where the product doesn’t work, the seller will be able to cover the situation and make sure that it is repaired and works accurately.