Products Liability Insurance

Products Liability Insurance:

The standard products liability policy covers all legal liability for bodily injury or property damage which arises out of goods or products manufactured, constructed, altered, repaired, serviced treated sold, supplied or distributed by the insured.

a. Cover Provisions: 

              i.  A Stand-Alone policy or sold as a combined package with Public Liability

           ii. Consequential loss following injury or damage 

           iii. Financial Loss is not usually covered as standard unless accompanied by bodily injury or loss of or damage to property. 

           v.   Pure Financial Loss cover can be added by extension. 

           vi.  The basic cover is dependent upon an element of an accident. 

           vii.  Period of Insurance – losses must occur within this period EXCEPT when cover is written on a CLAIMS MADE BASIS.

           viii.  Limit of Liability , each and every loss, AND in an aggregate

 b. Exclusions:

            i.   Injury to employees

           ii. Property belonging to the insured

           iii. Products recall costs

           iv. Professional Negligence

           v.  Contractual Liability

           vi. Deliberate acts

  c. Leading Case: 

           Donoghue v Stevenson 1932 – Strict Liability

Professional Indemnity:

This policy covers all professional people’s legal liability for injury,  damage or Financial Loss to their clients or the public which comes about as a result of a breach of their professional duties, or from their negligent acts, errors or omission in their professional duty. 

a. Cover Provisions: 

         i.  Pure Financial Loss cover may be awarded once professional negligence is established by the courts

         ii. Losses Occurring Basis of cover more restricted and used when claims experience deteriorate 

         iii. Claims Made Basis, wider cover.

         iv. Limit of Liability , each and every loss, AND in an annual aggregate

         v.  Retro Active Date of inception (RDI).

 b. Exclusions:

            i.   Dishonesty of the ensured