It covers the liability of reparation in case the insured company assumes the legal liability of reparation when products, which were manufactured, sold, supplied, or executed by the company, get out of its possession and damages a third party including consumers due to the defect of products.
Scope of Coverage
This insurance product covers the legal liability of reparation which resulted from accidents due to the defect of products during the insured period
Necessary Data for Premium Rate Calculation
In order to calculate the most favorable premium, the insured is required to present detailed questionnaire, company presentation book, pamphlet of insured products, certificate of product quality, and annual report etc.
1. Information on the insured company
Traits: legal status (individual, association, corporation, etc.), detail of business activities
Scope: history, capital, number of employees
Quality of technology: manufacturing process, quality control, existence of laboratory, A/S quality
2. Information on products
- Name, summary, price, sales area, sales estimate information
- Durable years, launching year, factory location
- Subcontractor or outsourcing details
3. Past accident
(summary, frequency, methods of investigation for cause, prevention schedules)
Information on the sales channel: distribution of direct sales and consignment sales