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
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.
Here are the key features of general and product liability insurance that you should be familiar with —
Product liability insurance is typically bought by —
Getting a product liability insurance for small business from Policybazaar.ae offers you a variety of benefits —
Without proper coverage, businesses can face significant legal costs in defending against product liability claims. Common claims include —
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.
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 |
The product liability insurance cost varies depending on several factors such as —
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.
Here are the top providers of Product Liability Insurance for Products —
Follow these simple steps to easily apply for general and product liability insurance —
That’s it! It is simple and hassle-free with us!
Yes, there are affordable product liability insurance plans for small businesses, ensuring protection against risks while keeping costs manageable.
Yes, many policies provide global coverage, but it’s essential to check your insurer's terms to ensure your products are covered internationally.
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.
It covers third-party claims for injury or property damage caused by a product your business manufactures, sells, or distributes.
While not mandatory, product liability insurance in the UAE is highly recommended, especially for businesses that sell products or interact with the public.
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.