There could be product liability claims by users of the products manufactured, sold or distributed by the Insured due to defects in the product especially from US and Europe. The customers are very litigious and could involve several millions of Dollars as compensation. These insurances are expensive especially to cover aforementioned areas.
The insurance cover provides indemnity to the Insured in respect of all sums which the Insured becomes legally liable to pay as damages in consequence of bodily injury to or death of a person using the product and/or loss of or damage to the property of a third party. The insurer will also pay legal costs and expenses in connection with the defence. The policy can be extended to cover worldwide geographical limits and jurisdictions.