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12 Product Liability Insurance Policies
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Published:March 2008
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Abstract
Product liability policies respond to legal liabilities to third parties incurred as a result of defective products. They cover: death and bodily injury; damage to property. Product liability policies normally do not cover: loss caused by negligent designs, plans, specifications or advice (see professional indemnity, chapters 8 to 11 above); the cost of recalling defective products from the market (see product recall, chapter 13 below); the cost of repairing or replacing the defective product itself (policies which provide this type of cover are known as product guarantee policies, see below at para 12.85); pure financial loss, that is to say financial loss which is not consequent on death, bodily injury or damage to property (this type of cover may be available as an extension to the product liability cover, see below at para 12.82).
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