Under “Law of Tort” or “Common Law”, anyone who has suffered Bodily Injury or Death or Property Damage due to defective product have a right to claim compensation from the party/manufacturer responsible for manufacturing the ‘defective’ product as this is construed as act of negligence. This can be well extended from manufacturer to Distributor or Seller also. It also covers bodily injury or property damages to third parties whilst on the insured premises and also damage to third party property surrounding the insured premises as well as bodily injury and property damage arising out of work carried out away from the insured premises.
It is virtually a combination of Public and Product Liability together with advertising and personal injury etc. The cover can be either obtained under “Claims Made Policy” which means that it covers all claims reported and filed during the policy period or extended policy period. However, if “Occurrence Based” Policy is obtained, it covers all claims occurring during the policy period regardless of the fact that the existence of the policy is there at the point of claim or not.