Our Insurance Comparison Tool allows you to pick the policy that's right for you by comparing every plan offered by Canada's leading providers. Need more info? Our Frequently Asked Questions can explain Product Liability cover in greater detail.
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Frequently Asked Questions(click to expand)
What Is Product Liability Insurance?
Product Liability insurance combines elements of Public Liability and Professional Liability to cover risks specific to the supply and purchasing of goods.
Who Is Product Liability Insurance For?
- storage facilities
As identifying the cause of damage may be complicated, it is important that all processes are sufficiently covered from product design to point of sale.
What Does Product Liability Insurance Cover?
- Bodily injury
- Property damage
- Legal expenses
- Compensation costs
Common examples of Product Liability claims may be due to any of the following:
- Design defects
- Manufacturing flaws
- Damage in transit
- Faulty repair
- Rebranding an existing product
- Defective instructions
- Imports from regions with different product safety specifications
What Is Not Included In Product Liability Insurance?
- Recall, replacement or repair costs
- Unsuitability or failure to perform
- Loss or damage to property in the custody or control of the insured
- Professional negligence
- Gradually occurring pollution
- Penalties, fines or punitive damages
How Much Does Product Liability Insurance Cost?
- Type of business
- Location of the business
- Value of the company
- Type of product manufactured/sold
- Claims history
While coverage limits will be determined on the type of goods manufactured as well as the type and size of the company, safety precautions will reduce the overall costs if the following are considered:
- Implementing safety policies
- Providing warnings of potential risks through proper use and dangers through improper use
- Taking early ownership should safety concerns be found
- Ensuring safety knowledge of products sold