Product liability insurance for the quality of products/services
Protection against risks
Civil liability for damage caused to third parties due to defects or errors in the manufactured goods or services provided
Act or omission
The act or omission of the Insured and the claim by the injured third party occurred during the period of validity of the contract.
Cause and effect relationship
There is a causal link between the Insured's actions or inaction and the damage, established by law in a court of law or recognized by the Insured.
Insurance territory
The damage is caused in the insurance territory.
Benefits of insurance in INGO
Features of setting liability limits
The limit of liability is set at the client's discretion: depending on how much the client, the insured under the contract, wants to protect himself. It is also influenced by the insured's income, the probability and amount of possible losses, and the claims of the parent company/counterparties.
The contract may provide for a limit per insured event (sublimit - each and every loss (e.e.l.). No more than 2 sublimits within the total limit are allowed (for example: total limit 1 000 000, sublimit per event 500 000).
It is possible to set a sub-limit for a certain type of damage: life, health or property.
outlook - «Evolving»
8.12.2023
For whom is product liability insurance relevant?
Such an insurance contract is usually required:
- exporters of goods to the countries of Europe and North America
- companies providing services or performing certain works abroad
- manufacturers of goods in the presence of an agreement on the use of license rights objects by license holders
Within Ukraine, such coverage is relevant for consumer protection, for example, for hotel or restaurant owners.
What is the cost of insurance?
The cost of insurance is calculated individually. The tariff is affected by:
- the amount of coverage
- type of goods produced and sold
- type of work or services provided
- total turnover (current and next year)
- actual and planned revenue from the insured activity
- availability of exports
- work experience
- history of claimed losses
What are the exclusions from insurance coverage?
The exhaustive list of exclusions is determined by the insurance contract on the basis of the INGO insurance rules.
The main exclusions from insurance coverage are:
- Manufacturing (sale) of products / provision of services without a special permit (license)
- Deliberate violation of the established technological rules for the manufacture of products, non-compliance with state requirements
- Failure of the insured to provide information about products in Ukrainian
- Failure to fulfill the obligation to withdraw the goods from circulation
- Recall of products
- Violation by the consumer of the goods of the terms of use, storage, disposal of goods, use of goods for other purposes
- Reimbursement of the cost of the product itself, its repair (warranty obligations)
- Financial losses, lost profits, interruption of production
- Moral damage
- Environmental pollution
- Copyright infringement, unlawful use of trademarks, etc
- Asbestos, lead-based paints, tobacco products, GMOs
- Fines and penalties
- Intentional, criminal acts (including gross negligence)
