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What Our Plans Cover
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Bodily injury caused by a defectiv...
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Property damage caused by a defect...
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Defects in design
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Legal defence costs and expenses
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Liability arising in declared expo...
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Vendors liability
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Products supplied by others but so...
Who Can Consider This Plan?
- A registered business, professional practice or organisation
- Activities within the classes the insurer writes
- Accurate disclosure of turnover, activities and territories
- Disclosure of all known circumstances that could give rise to a claim
- Compliance with any statutory licensing applicable to the activity
What May Not Be Covered?
- Cost of recalling, repairing or replacing the product itself
- Damage to the product, which is not third-party damage
- Claims in territories not declared to the insurer
- Products deliberately supplied knowing them to be defective
- Pure financial loss without injury or property damage
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
- Niva Bupa Health Insurance
- HDFC ERGO
- ICICI Lombard
- Bajaj Allianz
We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Product liability covers claims arising from injury or damage caused by products you manufacture, distribute or sell, after they have left your control. It responds to defects in design, manufacture, packaging and labelling.
For exporters the exposure is transformed by geography. A product sold into the United States or the European Union is subject to those jurisdictions' liability regimes, which produce far larger awards than Indian courts and are considerably more claimant-friendly. An exporter insured at Indian limits is not meaningfully insured for that market.
The other feature worth understanding is what the policy does not do. It pays for harm your product causes; it does not pay to recall the product, replace it, or compensate for it being useless. Those are separate covers and separate decisions.
Who should consider it
Manufacturers of any product reaching consumers. Importers and distributors, who carry liability alongside the manufacturer. Exporters, particularly to North America and Europe. Food, pharmaceutical and component businesses in particular.
Benefits
- Covers injury and damage caused by your products after sale
- Extends to design, manufacturing, packaging and labelling defects
- Worldwide and jurisdiction-specific limits available for exporters
- Legal defence costs, which dominate in foreign jurisdictions
- Vendors extension covering your distributors and retailers
- Frequently required by overseas buyers as a condition of supply
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Bodily injury caused by a defective product
- Property damage caused by a defective product
- Defects in design, manufacture, packaging or labelling
- Legal defence costs and expenses
- Liability arising in declared export territories
- Vendors liability, where the extension is taken
- Products supplied by others but sold under your name, where declared
Typically not covered
- Cost of recalling, repairing or replacing the product itself
- Damage to the product, which is not third-party damage
- Claims in territories not declared to the insurer
- Products deliberately supplied knowing them to be defective
- Pure financial loss without injury or property damage
- Regulatory fines and penalties
- Products outside the description declared at proposal
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 We map the exposure before choosing a policy What you do, who it touches, and where a claim would come from. Liability cover follows the exposure, not the industry label.
- 2 Trigger and retroactive date agreed first Occurrence or claims-made, and how far back the cover reaches. These decide more than the limit does.
- 3 Limits tested against a realistic worst case Not the average claim — the one that would matter. Defence costs are part of that calculation.
- 4 Underwriting and, for larger risks, a survey Insurers price liability on process and controls. Good documentation genuinely lowers the premium.
- 5 Policy issued, and notification process explained Late notification is the leading cause of declined liability claims. We make sure your team knows when to call.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Declare your export territories accurately. Selling into the United States or the European Union on a policy rated for India leaves you substantially uninsured in the markets with the largest awards.
- Product recall is a separate cover. This policy pays for the harm caused, not the cost of getting the product back.
- A vendors extension protects your distributors and retailers, and is frequently a condition of supply agreements with larger buyers.
- Keep batch records, testing documentation and traceability. In a product claim, being able to isolate the affected batch is often the difference between a contained loss and an open-ended one.
- Importers and distributors carry liability too. If you import and sell under your own name, you stand in the manufacturer's position for these purposes.
Documents required
- Business registration and constitution documents
- Description of activities, products or services
- Annual turnover and, where relevant, export turnover
- Number of employees and details of contractors engaged
- Claims and incident history, usually for five years
- Existing policy schedules, where cover is being replaced
- Contracts specifying required indemnity limits, where applicable
Frequently Asked Questions
Does it cover the cost of a recall?
No. Product liability pays for injury and damage the product causes to others. The cost of recalling, retrieving, repairing or replacing the product is a separate product recall cover, and for consumer-facing manufacturers it is worth having both.
I export to the US. Does my Indian policy cover that?
Only if the territory is declared and the limits are set for that jurisdiction. US liability awards and defence costs are orders of magnitude above Indian levels, and a policy rated for domestic sales is not meaningful protection there.
I only import and distribute. Am I liable?
Frequently yes. An importer or a distributor selling under its own name can be placed in the manufacturer's position, particularly where the actual manufacturer is outside the jurisdiction. Distributors need this cover as much as manufacturers do.
What if the product simply fails without causing harm?
That is not a product liability claim — it is a warranty or contractual matter. This policy responds to injury or damage caused to others, not to the product being unsatisfactory.
How is the premium calculated?
Principally on turnover, the nature of the product and the export mix. Food, pharmaceuticals and safety-critical components rate higher, and export territory is often the largest single factor.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.