FAQ - Public and Product Liability

  1. What is a third party claim?

    A third party claim is a claim brought against you by another person.

  2. Does our policy cover a member of the public or an employee who sustains an injury?

    Your policy covers you against a member of the public who sustains an injury and claims that you are liable. Your policy does not cover an injury to an employee; a claim of this nature would be handled under your Group Personal Accident policy.

  3. A customer falls at our store and sustains an injury but does not file a claim against us. Do we need to report the incident to you, our insurance company?

    Yes. You should notify us in writing after the incident, whether or not a claim has been made.

  4. Our office's toilet has overflowed causing water leakage to the premises below our office. The owner of premise below asked us to pay for the water damage to his property. Should we pay him for the damages?

    No. You are not allowed to make any payment to a claimant without our prior written consent.

  5. How are product defects defined?

    There are three basic types of defects:

    • Manufacturing Defects: The product is well designed, but the way in which it is made is unsafe. For example, the materials used to manufacture the product are inappropriate and caused a functional failure.
    • Design Defect: The intrinsic design of the product is unsafe, making the entire product line unreasonably dangerous. Design defects also apply to the way a product is packaged. For example, if the design of a childproof container is flawed and a child is injured as a result, the manufacturer can be held responsible.
    • Insufficient Instructions or Warnings: The design of a product may be perfectly safe and without defect, but the manufacturer may fail to include proper warnings or instructions for safe operation. What needs to be proved in a products liability case? Although products liability laws vary from country to country, and even from state to state in the US. Products liability cases are generally decided on strict liability rather than on negligence. Under strict liability, it is not required that there be a finding of fault, only that the product is defective in some way that caused or resulted in injury.
  6. What needs to be proved in a products liability case?

    Although products liability laws vary from country to country, and even from state to state in the US. Products liability cases are generally decided on strict liability rather than on negligence. Under strict liability, it is not required that there be a finding of fault, only that the product is defective in some way that caused or resulted in injury.