Product Liability Insurance

Standard policies in India exclude the cost of a recall. However, you can add a “Product Recall Extension” which pays for the massive costs of notifying customers, shipping the items back, and destroying the defective stock

Under the Consumer Protection Act, 2019, yes. An Indian retailer or importer can be held liable if the manufacturer is not reachable or is located in a foreign country. This is why retailers now insist on “Vendor’s Liability” extensions from their suppliers.

Yes. This is the most common use case for the Indian FMCG and restaurant industry. If a batch of packaged snacks or a meal causes illness (e.g., Salmonella or Lead contamination), the policy covers the medical claims and legal suits filed by affected consumers.

Legal claims usually fall into three categories: Manufacturing defects (something went wrong in the factory), Design flaws (the product is inherently dangerous), or Instructional defects .

No. Product Liability is for physical harm or property damage. If your software or machine simply fails to perform as promised but doesn’t hurt anyone, that is a “Professional Indemnity” or “Product Guarantee” issue, not Product Liability.

Yes. During the claim process, an Indian insurer will ask for ISO certifications, batch testing reports, and QC logs. If you have ignored standard safety protocols (like FSSAI or ISI standards), the insurer may reject the claim citing “Willful Negligence.”

This is an add-on you give to your distributors. It extends your insurance protection to your wholesalers and retailers, provided they sold your product in its original packaging without altering it.