Product Liability Insurance and Professional Liability Insurance…
Product Liability Insurance and
Professional Liability Insurance
Products Liability Insurance
• - Policy Exclusions
• - Policy Condition
Professional liability Insurance
Legal position of professional liability
The professional indemnity policy
Product Liability Insurance
Liability Loss Exposures
Liability can occur when an individual or an organization is held legally responsible for the injury or damage suffered by another person or organization. The possibility of being sued is a liability loss exposure
I.Product liability coverage provides protection against bodily injury and property damage losses arising out of some defect in the product you sold, manufactured or distributed.
II.Product liability insurance may also provide coverage for claims arising from damages due to providing inadequate instruction for use of the product or a failure to warn on your product label.
III.Responsibility for a product defect that causes injury may affect all sellers of the product who are in the distribution chain
IV.The parties that will be covered under this policy is:
The product manufacturer, importer, or distributor;
•A manufacturer of component parts;
•A party that assembles or installs the product;
•The wholesaler; and The retail store that sold the product to the consumer
a) bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time
i. physical injury to tangible property including all resulting loss of use of that property, or
ii. loss of use of tangible property that is not physically injured.
Insured Perils Under Product Liability Insurance
There are three types of defects that might cause injury and give rise to product liability c
Insurance claim by third party:
Design Defects - Present in a product from the beginning, even before it is manufactured, in that something in the design of the product is inherently unsafe.
Manufacturing Defects - Those that occur in the course of a product's manufacture or assembly.
Marketing Defects - Flaws in the way a product is marketed, such as improper labeling, insufficient instructions, or inadequate safety warnings.
This policy does not cover any loss, damage or liability directly or indirectly caused by or arising out of or aggravated by:
i.War, invasion, act of foreign enemy, hostilities, riot, strike
ii.Nuclear reaction, radiation, radioactive, contamination
iii.Willful act or willful negligence of any official of the participant
iv.Partial or total cessation of work due to lack of use
v.Wear and tear
vii.Cost of replacement, repair or rectification of defective material and/or workmanship
viii.Consequential loss of any kind
Exclusion Under Product Liability Insurance
i.Asbestos and Silica
iii.War and Terrorism
v.Pure Financial Loss
vii.Sanction, Embargo and Prohibited
viii.Business Risk (Failure to Perform)
xi.Products Warranties and Guarantees
xii.Damage to Products
•the liability professionals have for any act or omission that is in breach of a duty of care that they owe. It is also known as “professional negligence”.
HOW LIABILITY MIGHT ARISE
•From breach of contract.
•Contract of service between a professional person and his client.
•Related with the care and skill in the services.
•If failure and result in loss, professional person may be sued for negligence.
SCOPE OF COVER
Any actual or breach of duty
•Negligent act, error, emission, or misstatement
•Breach of warranty of authority committed in good faith
•Breach of confidentiality which occurs in the performance of or failure to perform Professional Services
Who need the PLP ?
Architects and engineers
Quantity Surveyor and
Lawyer Professional Indemnity Insurance
Real estate agent
Professional Liability Policy
Loss of Documents
Dishonesty of employee
Breach of confidentiality
Bodily injury arising from a breach of professional duty
Infringement of copyright