What is an efficacy exclusion in a product liability insurance policy?

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
  • consulting
  • 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.

Read More: High Court holds insurer cannot rely on an ‘efficacy’ exclusion clause

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

Compare Public Liability Insurance

1300-Insure

Public Liability 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

If A Bakery Makes Someone Sick Will Their Public Liability Policy Cover Their Clients?

product-liability

If My Bakery Makes Someone Sick  Am I Covered?

In the event of customer of a bakery, cafe or restaurant getting sick with illness such as salmonella poisoning, where the illness creates a loss can the insured claim off their Public Liability Policy?

What is covered?

Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or economic loss resulting from your negligence.

And Product Liability Insurance covers your business in the event that the product you sell, supply, repair or deliver causes death, personal injury or property damage. Product liability insurance covers you if any of these events happen to another business or person by the failure of your product or the product you are selling.

So in the event of food poisoning such loss might look like

  • Loss of wages for clients with the poisoning
  • Medical Expenses
  • The injured parties legal fees*

*Legal Costs and Expenses cover is part and parcel of Liability insurance and defence costs are usually additional to the limit of liability. The Policy Limit of Liability is usually inclusive of Third Party Costs awarded against the Insured but this is not always the case, please check with your broker or insurer.

What if its not our fault?

Salmonella infection is a notifiable condition, and in the case of a business it's likely to be investigated by the local council.If it turns out one of your suppliers is guilty of  negligence, you may have a good position for claiming off them and it may include loss or damage to your brand as a result.

Click Here to Arrange a Quote 

Public Liability 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 inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs

 

Clothing Retailers & Wholesalers

 

What is Broadform Liability

 What is broadform liability insurance?

What is Broadform Liability?

Broadform Liability usually covers both public liability insurance and product liability insurance.

Check with our team when you get a quote to see if you require Broadform Liability.

What does Broadform Liability Cover

Broadform Liability cover your business against claims for personal injury to another person (other than employees) or damage to property owned or controlled by someone else, or advertising liability. Property damage, personal injury or advertising liability which gives rise to legal liability must happen during the period of insurance and be caused by an occurrence in connection with your business activities, Broadform also cover product liability.

Is all Public Liability Insurance Broadform Liability?

You can buy just public liability cover, and likewise, you can just buy product liability cover. These policies will exclude plenty of liability claims scenarios.

Check your policy to see if your policy is Broadform Liability or talk to our team.

Does it Include Product Liability?

Public liability insurance doesn't always include product liability insurance, and different insurers have different offerings, for instance with AAMI product liability insurance is optional.

All the insurers that Publicliabilitycomparison.com.au compare will be broadform liability quotes, these insurers include AIG, Allianz, CGU, HCi, QBE and Vero



1300-Insure

Public Liability Insurance Compared

PUBLIC LIABILITY INSURANCE FAQS

PUBLIC LIABILITY INSURERS USED MAY INCLUDE:

AIG Public Liability Insurance Allianz Public Liability Insurance Quotes   Brooklyn   CGU Public Liability Insurance  HCi Insurance Comparedprotecsure-logo QBE Public Liability Insurance

sportsUnderwriting Vero Public Liability Insurance  

* Insurers may include Allianz, AIG, Altiora, Ansvar, Arena, CGU, HCi, Highstreet Underwriting, QBE, WR Berkley, Sports Underwriting, Vero, Zurich

Public and Products Liability Insurance Quotes

Compare Public Liability Insurance

Public Liability Insurance Compared

* Subject to insurers acceptance

Public Liability Insurance Australia

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 inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs

What is public liability insurance?

What is Product Liability?

Insure 247 Pty Ltd ACN 612944215 an Authorised Representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433.

Compare policies from leading Australian Insurers, compare claims ratings, financial ratings, excesses, and inclusions.

 Publicliabilitycomparison.com.au uses Steadfast Technolgy and Insure 247 Software to approach a network of insurers and specialist underwriters for public liability insurance quotes, and through our licensee Ausure and Steadfast we have access to all major insurance markets.

*Publicliabilitycomparison.com.au is not a market comparison service, the financial products quoted may not compare all features that may be relevant to your circumstances. Click here for a list of Insurers used Please refer to our Terms of us Publicliabilitycomparison.com.au by Insure 247 Pty Ltd ACN 612944215 an Authorised representative of Ausure Pty Ltd Australian Financial Service License Number 238433.