Defender of Defects - Product Liability That Keeps You Selling
Product liability insurance protects manufacturers, importers, distributors and retailers against claims from defective products under India’s Consumer Protection Act and related laws.
Manufacture Boldly - We’ll Handle The Fallout.
- Cover for legal defence, awards and settlements under product liability claims.
- Support for regulatory defence and recall cost assistance (where available).
- Specialist wording for pharmaceuticals, food, toys, appliances and D2C brands.
Product Liability Insurance
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What is Product Liability Insurance
When a Product Hurts, We Help
Product liability insurance indemnifies the insured for legal liability arising from injury, property damage or death caused by a defective product or inadequate warnings. It also typically covers legal defence costs and settlements awarded by courts or consumer forums under CPA 2019.
Why Is This Policy Vital?
Because one recall or lawsuit can sink growth
CPA 2019 strengthens consumer remedies; exposure for manufacturers and sellers has risen – product liability protects balance sheets.
Product recalls are expensive – recall costs, logistics, and PR can be covered with specific add-ons.
D2C and exported goods amplify exposure – export markets may demand indemnity and recall support.
Who Needs Product Liability Insurance?
Manufacturers (electronics, toys, food, pharma)
Direct product risk.
Importers & Distributors
Liability for sold products.
Retailers & Marketplaces
Third-party seller exposures.
D2C Brands & Startups
Scaling businesses with product risk.
Contract Manufacturers & Packagers
Liability from production defects.
Types / Add-ons Commonly Offered
Legal Defence & Settlements - core cover.
Product Recall Costs - logistics, notification and disposal.
Public Relations / Reputation Support (some programmes)
Contingent Liability (retailer/distributor exposures)
Pharmaceutical / Food Specific Wording (regulatory cover)
Extended Producer Responsibility (EPR) related endorsements
What Product Liability Pays For
Bodily Injury from a Defect
Third-party Property Damage from Product Failure
Legal Defence Costs & Settlements
Court-ordered Compensation (consumer forums)
Recall Logistics & Disposal Costs (if endorsed)
Regulatory Fines (where endorsed in policy)
Loss of Sales (limited contingent BI if offered)
Cross-liability cover for contract manufacturers
Inclusions & Exclusions
Inclusions
Legal defence costs for product liability claims.
Settlements & awards up to policy limits.
Third-party bodily injury & property damage arising from product use.
Recall costs (if endorsed).
Exclusions
Knowingly defective products (intentional non-compliance).
Contractual penalties and liquidated damages (unless endorsed).
Wear & Tear / normal deterioration causing failure.
Non-compliance with statutory manufacturing standards (if gross negligence).
Insurance Partners
“We work with specialist underwriters experienced with product recall and liability programmes.”
FAQ's
Not automatically - regulatory fines often require specific endorsements; discuss needs for regulated products.
Yes - retailers and sellers can be held liable under CPA 2019 for defective products; cover for retailers should be considered.
Some product liability policies offer recall cost extensions; if recall is a concern, ensure recall coverage is included.
Limits are based on product risk, sales volumes, recall cost estimates and jurisdictional exposure. Underwriters often require risk control and QA processes.
Yes - insurers can design covers with international territorial scope, but export-specific exposures should be declared.
Batch records, QC logs, purchase orders, customer complaints log, and incident reports; for recalls, logistics invoices and disposal receipts help.
Customers Says..
Ms. Ananya Rao Founder, Kitchenly
Mr. Deepak Sharma CEO, ToyBox India
