What is an efficacy exclusion
‘Efficacy - the failure of any product to correctly fulfil its intended use or function and/or meet the level of performance, quality, fitness or durability warranted or represented by the insured’
Product Liability Insurance is not a Manufacturers Guarantee Insurance
The policy is there to cover injury or property damage caused by the product, not if it has failed to deliver the results. Products Liability is not intended to be a "Manufacturers Guarantee"
Insurers generally add this exclusion with occupations that manufacture goods such as:
- cosmetics manufacturers
- health product manufacturers
- medical supplies manufacturers
- security & telecommunications system installations
- and even trades such as waterproofing.
It is also a common exclusion for businesses that import products, as Australian insurers see this business type as manufacturers.
Check with your broker to discuss the limitations of a policy that includes an efficacy exclusion
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED
Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs