Product liability

Who concludes such insurance?
THE INSURANCE CAN BE CONCLUDED by any merchant or manufacturer of goods intended for consumption or used as components in the production of other goods.

What does this insurance protect?
THE “PRODUCT LIABILTY” INSURANCE protects manufacturers and merchants from consumer claims in relation to products manufactured or sold by them.

What does the insurance cover?
THE INSURANCE COVERS the amounts which the manufacturer or merchant is obligated to pay as a result of damages inflicted to the buyer due to faulty goods. The coverage also includes expenses incurred for the product’s disposal, repair, modification or replacement. This insurance covers physical harm (loss of work capacity, illness or death) and/or damages and loss of movable and immovable property as a result of the use of insured goods, either manufactured or sold.

THE INSURANCE MAY SECURE ADDITIONAL COVERAGE for insured parties and activities. The following parties may be considered as insured persons in relation to activities within their competence:Managers and/or associates of the insured party;Employees hired by the insured party under a labor agreement;Officials or members in the insured party’s social, sports or health organizations, or his fire and medical service, in favor of the employees.

Additionally insured activities:Events or organizations for public catering, social, sports and health activities , and activities undertaken by insured party’s fire and medical service, and maintenance of his property, in favor of his employees,.What are the compensation limits?

THE COMPENSATION LIMITS are of two types: individual and aggregate. In case of the individual limit, the insurer’s liability for all compensations and expenses payable due to an insurance event may not exceed the individual liability limit defined in the policy. A series of claims arising from the same manufacturing mistake or arising from the same product or service, or the same defect in different goods, is considered as one insurance event. In the case of the aggregate limit, the insurer’s liability for all compensations and expenses payable due to insurance events occurring during the insurance period may not exceed the aggregate liability limit defined in the policy.

Where does the insurance apply?
THE INSURED PARTY’S LIABILITY COVERAGE applies for liability arising from events occurring within Bulgaria, the EU or all anywhere in the world, except for the US, Canada and any territories under their jurisdiction. The territorial application may be expanded for an additional premium payment.