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Product Liability Insurance is specifically designed for product manufacturers, wholesalers and retailers. By protecting their third party legal liability in connection with their products, the insurance helps to reduce potential burdens borne by manufacturers and merchants.
Protecting Against Third Party Liability Arising from the Use of a Product
The policy mainly protects the client's legal liability against bodily injury or property damage to a third party (users of the product under most circumstances) in connection with the use of the product (including its packing).
Fulfilling Requirements for Obtaining Import Permit
Authorities of some countries such as the US and Canada demand that importers purchase an appropriate product liability policy for their import goods before issuing the relevant import permits.