A product is defined as any physical item “Fit for purpose” that is sold or given away.
Organizations which are engaged in manufacturing, sale or service of products need to consider cover for liability for loss, damage and/or injuries arising out of use of their products. Potentially, the claims can be a very high magnitude. This exposure mainly falls on manufacturers though there have been instances where in the first instance claims have been lodged on the local suppliers / agent.
The Products Liability Insurance covers legal liability arising out of a defective product manufactured and having left the insured’s premises, as opposed to the Public Liability Insurance which covers risks within the premises.
If you are involved in such an activity it is essential for you to review your exposures in detail.