Product Liability Insurance
Product liability insurance is a crucial safeguard for businesses that manufacture, distribute, or sell products. It provides protection against legal and financial repercussions if a product causes harm, injury, or property damage. Whether you're a small business or a large manufacturer, product ...read more
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What is Product Liability Insurance?
Product liability insurance provides coverage to businesses against claims arising from the use of their products. If a product causes harm, injury, or damage to a customer or their property, this insurance protects the business from legal and financial repercussions.
For example, if a faulty electrical appliance causes a fire, the manufacturer or seller could be held responsible for the damages. Product liability insurance ensures that businesses can handle such claims without facing severe financial losses.
Key Features of Product Liability Insurance
Here are the key features of general and product liability insurance that you should be familiar with —
- Coverage for Defects: Protects businesses from claims arising due to product defects, including issues with manufacturing, design, and labeling.
- Injury or Damage: Covers injury to consumers or damage to property caused by the product.
- Legal Fees: Includes coverage for legal costs involved in defending claims related to product issues.
- Worldwide Coverage: Many policies offer global protection, covering businesses if their products cause harm outside the UAE.
- Third-party Financial Loss: Helps protect clients from additional costs, such as increased production or labour expenses due to product recalls.
- Crisis Management and PR Expenses: Provides coverage for managing public relations and reputation restoration costs following a valid claim.
Who Can Buy Product Liability Insurance?
Product liability insurance is typically bought by —
- Manufacturers: Who produce and sell products
- Distributors and Retailers: Who sell products from manufacturers
- Importers: Businesses importing goods from other countries for resale
- Small Businesses: Even small businesses dealing with products can benefit from affordable coverage tailored to their needs
Why Should You Buy Product Liability Insurance Through Policybazaar.ae?
Getting a product liability insurance for small business from Policybazaar.ae offers you a variety of benefits —
- Wide Range of Options: Policybazaar.ae connects you to multiple insurers, helping you to choose a product liability insurance plan that best suits your business needs
- Easy Comparison: The platform makes it easy to compare coverage, premiums, and benefits from various insurers, ensuring that you get the best deal
- Expert Guidance: Benefit from expert advice to help you understand policy terms and ensure that the selected plan meets your company’s requirements
Common Product Liability Claims
Without proper coverage, businesses can face significant legal costs in defending against product liability claims. Common claims include —
- Labeling Defects: Claims that the product lacked necessary warnings or instructions that could have prevented harm
- Design Defects: Faults in the product design that make it inherently dangerous
- Manufacturing Defects: Arguing that a product became hazardous during the manufacturing process
Having product liability insurance in the UAE ensures that your business is financially safeguarded in case of product-related accidents, giving you peace of mind.
Product Liability Insurance Exclusions and Inclusions
The below table shows the common inclusions and exclusions in product liability insurance coverage —
| Inclusions | Exclusions |
|---|---|
| Protects Profit and Loss: Shields your business from financial losses due to product liability lawsuits | Deliberate Actions: Damage caused by intentional actions, fraud, or willful negligence is not covered |
| Worldwide Coverage: Offers global protection with customisable territory and jurisdiction options | Product Misuse: Claims arising from the misuse or improper maintenance of products by consumers are excluded |
| Product Recall Costs: Covers expenses related to product recalls, including redistribution and logistics costs | Contractual Liability: Claims arising from contractual obligations that would not exist without a specific contract are excluded |
| Product Guarantee: Covers costs incurred during product recall exercises | Fines and Penalties: Any financial losses from fines, penalties, or punitive damages are not covered |
| Third-party Loss Protection: Helps protect clients from additional costs like extra wages or production delays due to recalls | Repair or Replacement Costs: Costs for repairing, reconditioning, or replacing defective products are excluded |
| Crisis Management: Covers public relations expenses to restore your brand’s reputation after a valid claim | Claims Before Retroactive Date: Claims that occurred before the retroactive date specified in the policy are not covered |
| Food and Beverage Claims: May provide coverage for claims related to food or beverages served by your business | Natural Disasters and War: Losses due to war, riots, strikes, civil unrest, or natural disasters are generally excluded unless specified in add-ons |
How Much Does Product Liability Insurance Cost?
The product liability insurance cost varies depending on several factors such as —
- Type of product
- Business size
- Coverage level
For example, a small business might pay less for a basic policy, while large manufacturers might pay higher premiums due to the increased risk involved with their products.
It’s important to get a product liability insurance quote to determine the exact cost for your business needs.
Top Product Liability Insurance Providers in UAE
Here are the top providers of Product Liability Insurance for Products —
- Unions Business Insurance
- Abu Dhabi National Takaful Business Insurance
- Al Ain Ahlia Business Insurance
- Insurance House Business Insurance
- Orient Business Insurance
How to Apply for Product Liability Insurance in UAE?
Follow these simple steps to easily apply for general and product liability insurance —
- Visit Policybazaar.ae: Start by browsing different product liability insurance options available through the platform
- Request a Quote: Fill in your business details and get a personalised product liability insurance quote
- Compare Plans: Use the comparison tool to evaluate various insurance providers and policies
- Final Selection: Once you’ve chosen a suitable plan, proceed with the application, ensuring that all necessary business details are accurate
- Confirmation: After submission, a representative will contact you to finalise your policy and provide any additional information
That’s it! It is simple and hassle-free with us!
Product Liability Insurance- FAQs
Q1. Can small businesses get product liability insurance?
Yes, there are affordable product liability insurance plans for small businesses, ensuring protection against risks while keeping costs manageable.
Q2. Does product liability insurance cover damage outside of the UAE?
Yes, many policies provide global coverage, but it’s essential to check your insurer's terms to ensure your products are covered internationally.
Q3. Is it possible to get cheap product liability insurance?
Yes, there are cheap product liability insurance options available, especially for small businesses, ensuring that you can still get the necessary protection without a hefty premium.
Q4. What does product liability insurance cover?
It covers third-party claims for injury or property damage caused by a product your business manufactures, sells, or distributes.
Q5. Is product liability insurance mandatory in the UAE?
While not mandatory, product liability insurance in the UAE is highly recommended, especially for businesses that sell products or interact with the public.
Q6. How can I apply for product liability insurance?
You can apply for product liability insurance online via platforms like Policybazaar.ae, where you can compare quotes and find the best plan for your business.
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