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Product liability insurance

Covers losses caused by your product.

Protection against product liability losses

Product liability losses are a significant risk to your business operations. A defect or flaw in the safety of your product may cause significant material damage or bodily injury for which your company may be held liable.

According to the Product Liability Act, indemnification liability is independent of negligence

According to the Product Liability Act, the manufacturer or importer of a product is under strict liability for any material damage or bodily injury its product causes to a consumer.

Professionals at your assistance in case of loss

We will determine your company’s indemnification liability on your behalf and negotiate with the claimant. We will also cover any legal expenses.

Manage your company’s product liability risks with product liability insurance

Product liability means that the company that has manufactured, imported or sold a product is liable for any damage or loss caused due to flaws in the safety of the product. The amount of compensation paid for material damage or bodily injury can easily be as high as tens or even hundreds of thousands of euros.

For example, if a food product manufactured by your company has spoiled, in the worst case, it may cause severe personal injuries, such as poisoning, disability or illness. The amount of compensation for such event may be significant. That is why various industrial and retail companies have prepared for liability claims by taking out a product liability insurance policy.

Product liability insurance is an important insurance for companies of all sizes. Quality control and management of product safety is often more difficult for smaller companies due to lack of resources. Insurance is necessary for ensuring business continuity in the event of loss or damage.

What does product liability insurance cover?

Product liability insurance covers bodily injuries and material damage caused to a third party by a delivered product that is faulty or not safe enough, as well as financial losses directly connected to these. Such loss may affect an individual person or another company. We have provided examples at the bottom of this page showing which kind of losses are indemnified under product liability insurance.

In the event of loss, you will be assisted by Pohjola Insurance experts, who will investigate whether a liability exists and what the amount of damage is. This frees up your company’s resources for your core business and allows you to focus on the essential while we negotiate with the party demanding damages. If the claim is disputed and taken to court, your liability insurance will also cover the legal expenses of the proceedings.

Extend your product liability insurance cover

You can extend your insurance cover with product recall insurance in case your product has to be recalled from the market. Costs resulting from recall may be significant and your company may also suffer loss of reputation and decline of sales.

Recall insurance covers losses such as expenses from communication about product recall and dismantling, detachment, transport, repair and alteration of products. Contact us for more information.

How can I take out product liability insurance for my company?

Please leave your contact information using the button below and we will send you a quote for product liability insurance. Our experts at Pohjola Insurance have extensive understanding of the sector and can provide more information on the content and price of product liability insurance.

We also offer customised liability insurance for your company’s specific needs, whether you are a manufacturer, an importer, a wholesale dealer or a retailer.

After receiving your request for a quote, we will contact you to determine the best liability and other insurance solutions for your company!

Example 1: A loaf of bread from a bakery contains a stone, breaking a customer's tooth. The bakery is considered to be liable for the loss. We compensated the dental repair expenses from the product liability insurance.

Example 2: A mountain bike’s steering wheel had a structural weakness and caused the cyclist to fall over when it broke. We compensated the cyclist's medical care costs under the manufacturer's product liability insurance to the extent that the policyholder was liable for the expenses.

Example 3: The policyholder supplied components for a piece of equipment manufactured by the customer. The component was faulty, damaging the equipment. The customer demanded compensation from the policyholder for the loss. According to the sales agreement on the components, the seller was responsible only for direct property damage caused by the product. The loss was coverable under the product liability insurance terms and conditions. We compensated under the policyholder's product liability insurance the amount the policyholder was liable for under the sales agreement. The remainder of the loss was to be compensated by the customer.

In the op.fi service, you can easily and safely manage all of your company's insurance transactions. The service allows you to, for example

  • report a loss and see how your loss report is processed
  • print out certificates of insurance
  • order a Green Card for company vehicles

How to activate the Internet Service:

  • Make a Corporate eServices Agreement and name the administrators.
  • Administrators can add other users and their access rights to the service.

 

The insurer is either Pohjola Insurance or A-Insurance Ltd. The losses will be covered in accordance with the law and the insurance terms and conditions.