What does it cover?

• Protects businesses from lawsuits if their product causes bodily injury or property damage to a third party.

• Covers product-related defects for manufacturers, distributors and retailers.

• The three types of defective product liability claims include - defective manufacture, defective design and failure to warn or instruct.

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How is premium cost dervied?

• Based off of product type, size of business, risk factors.

• Typically based off of amount of product sold.

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Claim Example

• A sporting store sells children playground sets.  One playground set sold had collapsed while children were playing on it, injuring two of the three children on the playground due to faulty pieces.  The parents of the injured children sue the sporting store.