What is Product Liability Insurance?
Product liability insurance covers compensation claims and legal defence costs made against the insured for bodily injury and property damage suffered by third parties due to a defect in a product that is manufactured, imported, distributed or sold.
With Turkish Law No. 7223 on Product Safety and Technical Regulations, the liability of manufacturers, importers and distributors for product-related damage has become more clearly defined. A shortcoming in design, production, packaging or instructions for use can lead to serious claims.
For exporters, buyers and distributors often require product liability insurance and a certificate of insurance as a contractual condition. The territorial scope of the policy should match the countries where your products are sold; high-risk markets such as the USA and Canada are usually assessed separately.
What is covered?
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Bodily injury
Injury, disability or death of third parties caused by a defective product.
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Property damage
Damage the product causes to the property of third parties.
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Legal defence costs
Lawyer, expert and court costs in defending claims.
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Domestic sales
Claims arising from products sold in Türkiye.
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Export cover
Claims arising from products exported to the countries stated in the policy.
Optional extensions
- Product recall costs
- Vendor endorsement for sellers and distributors
- Worldwide cover including the USA and Canada
- Contractual liability extension
- Combined policy with public liability
Who is it for?
- Food, chemicals, cosmetics, automotive supplier and machinery manufacturers
- Importers and brand owners
- Exporting manufacturers
- Wholesale and retail distributors, e-commerce sellers
Information needed for a quote
Sharing the following information lets us obtain fast and accurate quotes from several insurers.
- Product groups and areas of use
- Annual turnover, export share and export countries
- Quality certificates and testing/certification processes
- Past claims and recall information (if any)
Frequently asked questions
Does product liability insurance cover the defective product itself?
No. It covers damage the product causes to third parties; repairing, replacing or refunding the defective product is excluded. Recall costs can be insured with a separate extension.
Can I get cover for the countries I export to?
Yes. The territorial limit can be set to include your export countries. Markets such as the USA and Canada may require special assessment and an additional premium.
I am an importer, not a manufacturer. Is this insurance right for me?
Yes. Under the legislation, importers can be held liable like manufacturers. Product liability insurance is an important safeguard for importers and brand owners.
What is the difference between product liability and public liability?
Public liability covers damage occurring at your premises or during your operations. Product liability covers damage that occurs after the product has left your hands and reached the user. Both can be combined in one policy.
Scope of cover and limits are determined by the general and special conditions of the issuing insurer.