If you are into the product manufacturing business, you must get business insurance for products . This can protect you against damage claims made by people who have been harmed by the products.
You can get protection against consecutive damage too. Serial damage is the damage of multiple persons from any defect of a product series. Liability can be reduced with the help of the law. The liability for damages can be reduced in contributory negligence of the injured party.
A product liability insurance option can cover these types of damages.
The general rules related to product liability insurance are based on contributory. The validity of claims is a significant factor. The claims of the injured are barred beyond three years after the victim becomes aware of the damage. The limitation is due to the negotiations between the parties. Moreover, the law refers to the Provisions of the Civil Code.
However, if more than 10 years have passed since the marketing of the product, there can be no more claims. In this case, you will not need the product liability insurance.
Nevertheless, the claim will be valid if there is a pending dispute or pending collection procedures.
Liability for defective products is the situation in which a manufacturer incurs problems due to a security breach of any of its products or services causing damage to any person whatsoever. This is a special regime of responsibility.
The product liability insurance can cover damage claims related to this. Liability for defective products was born July 25, 1985, in the form of a Community directive. It was 13 years later that this directive was finally transposed into law. The law inserted the articles on the responsibility for defective products under the Civil Code. In 1998, the law introduced this liability regime with two fundamental characteristics:
- Character of public policy: it means that we cannot deviate from the provisions by agreement with respect to the product liability insurance.
- An optional character theory: it actually tends to be exclusive. According to the letter of the Directive, the victim could, if it wished, sue for its damages upon the basis of this law, or the common law.
However, the Court of Justice of the US Communities has imposed a restrictive interpretation of product liability insurance, which tends to displace any other regime of strict liability if the terms of this special scheme are met.
The 1st Civil Chamber of the Court of Cassation has complied with this interpretation in 2007. Nevertheless, other decisions of this Court are expected to see the final confirmation. In US law, the exclusive nature of the liability for defective products makes product liability insurance a priority.
The scope of the purpose is quite big. The Civil Code defines the product in an extremely broad way. In its definition, only properties are excluded.
An object will be considered a product, even if it is incorporated in a building, including the products of the soil, livestock, hunting, and fishing. Electricity is considered to be a product as well. Thus, you will get product liability insurance coverage for electrical goods.
The Civil Code defines repairable damage widely too. The provisions of this title shall apply to compensation for damage resulting from a personal injury. They also apply to repair of the damage with an amount determined by decree. The product liability insurance can protect the manufacturer from all sorts of damage claims.