Product Liability Insurance

Product liability insurance is very useful for those who are engaged in marketing of their products, from the manufacturing stages to the final stages of bringing the products to the markets for sale. If something wrong happens and customer requirement is not fulfilled than it results in loss for company. Customer’s liability will be reduced and company can be targeted for harmful law suits that affect marketing of products. This concept is termed as commerce stream, in many countries the product liability law is managed by this concept. If a company commercializes its products for sale and marketing and assures customers with warranty guaranty of products, than that company is also responsible for any defect present  in the product and company answerable for any damage. If the terms and conditions of company are favorable than   consumer may be given compensatory amount and pays for damages, medical allowances, and other fees. Customer claims are based on following issues:

1. Production drawbacks:

This includes the claims of customer for the defect in the product during production process due to which product cannot be used safely. After claims of customer, company tries to lessen the drawbacks and after recovery returned to customer.

Example:

You buy an electric appliance, geezer, heater or air conditioner but your product do not function properly. So, you can claim for this to the company for reconditioning of your product.

2. Designing faults:

In this case, designing faults are mentioned on the claim forms. Small vehicle manufacturers usually have to face these types of claims and then they have to repair the vehicle for gaining customer liability. For example automobile, bikes etc.

Example:

Customer finds a designing fault in automobile after purchase such as the structure or parts are not working accordingly. You can claim for this and avail the opportunity of change or exchange and maintenance of automobile.

3. Warning and instructions:

According to the functions and manufacturing of the products, certain warnings and instructions are given and written on the packing of any product. These warning and instructions are for proper usage of product and for safety of customer.

Example:

When you purchase an iron, there is a warning note written, “Avoid ironing clothes while you are wearing” and another instruction “Caution UV Light Do not directly looks at light”. These all signs are to reduce the risk factors and potential dangers to the customers.

Conclusion:

In this that increase the trust and long term relationship among company and customers article we have discussed about product liability insurance and its silent features that offers wide range of facilities.