Product Liability insurance provides cover to the insured for bodily injury or material damage caused to third parties by products, after such products leave the direct supervision of the insured and he will therefore have no opportunity to exercise any form of control over these products. In other words, the Liability Cover for a defective product begins once the product is no longer under the insured’s control.
The insurance reimburses for costs and expenses related to the defense of any claim against the insured, provided that they have been previously approved by the insurance company. The bodily injury or material damage caused must be caused by products which the insured sold, supplied, installed, modified or processed in connection with his profession.