》What is Products Liability Insurance?

The insurance to indemnify the insured, which includes manufacturer, importer/ exporters, distributor or retailer, against all sum which the insured shall become legally liable to pay compensation to third party in respect of bodily injury and /or property damage arising from accidents happening with your designed products due to the defects of manufacturing, designing, advertising and /or transportation.

》Who is the prospect of products liability insurance?

• Manufacturers, processing factory and assembling factoring.
  
• Importer, Exporter, Distributor, wholesaler and retailer.
  
• The suppliers or manufacturers of material, component and/ or parts of final products.
  
• Relevant parties involve with insured products.

》Why applying for Products Liability Insurance?

• While Customer Protection is becoming the global trend, the liability for manufacturers and distributor are also ascending. However, risks shifting via insurance could be one of best way to lighten burden of the captioned liabilities.
  
• Insurance certificate is kind of assurance for customer to accept particular products from any others without certificate.
  
• Insurance protect the enterprises from tremendous losses accidentally, and it contribute to stabilize the finance, profit and operation of the enterprise then.
  
• As the intermediary and expert of insurance field, insurance brokers will help you in resolving insurance related affairs including claims or lawsuits received by your side.

》How to decide limit of liability?

Limit of Liability meant the maximum liability for Insurance company to indemnify the insured of losses covered by insurance policy within policy period. The common limits shows in policy are US$500,000., US$1,000,000. and US$2,000,000. However, the insured could decide the limit by itself own or refer to its buyer requests.

》What are Deductible and Self-Insured Retention (S.I.R.)?

The insured shall assume the amount of loss under SIR for each and every loss (including the defense cost), insurance company will indemnify the insured the loss in excess of SIR. SIR or Deductible will be set by underwriter depends on the nature of products.

》How long is the period of insurance?

One year in general.

》Policy Form

Insurance company cares much of the Date of Loss (DOL) and Date of Notification (DON) when a loss occurred, rather than when were the insured products made and sold. There are two policy forms as follows:

1. Occurrence Form: The insurance company is liable for any losses occurred within the policy period, no matter how long later the claim/losses were reported to the insurance company.
   
2. Claims Made Form: The loss or accident should happen within the policy period (back to retroactive date) and the claims will be made either to the insured or the insurance company within the policy period.

》Territory / Jurisdiction

Generally, the world is separate into USA/Canada and Rest of World two different are as in PLI policy design. The insured choose the areas where it's products distribute over.

》Certificate of Insurance

After the policy was written, the insured could apply for insurance certificates for the request of it's buyer or needs in business development.There are two type of certificates:

• Additional Insured.
  
• Notice only / certificate holder

》Vendor's Liability clause

Vendor's Liability clause extended to cover the liability of Vendor in selling of insured products.

》How much is the Premium Rate?

No fixed rate for specified products, there are five major factors may influence the premium rate.

• Nature of insured products
  
• Territory and Jurisdiction
  
• Amount of Limits
  
• Estimated Sales amount for coming year.
  
• Others (Loss record, QC certificate, and Market changes)

》Calculation of Premium

• Premium is charged by insurance company in the beginning of policy period which is called Minimum & Deposit Premium by calculated on predicted sales amount times premium rate.
  
• The stipulation that a Minimum & Deposit Premium must be paid no matter how different is the actual sales with predicted sales or any other situation.

》What is the Claim Procedure?

The insured shall notify V&C immediately once they received claims or court notifications. V&C will discuss with and note the insured of the proposed strategies and actions, and monitor the progress of claim processing.

》Process to apply PLI

Calling us or/and sending us your inquiries. V&C's colleague will contact you and work together with you for your best solution.