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

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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.

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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? 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.

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.

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



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PUBLIC LIABILITY INSURANCE FAQS

 

PUBLIC LIABILITY INSURERS USED MAY INCLUDE:

AIG Public Liability Insurance Allianz Public Liability Insurance Quotes   Brooklyn   CGU Public Liability Insurance  Calibre public liability Insurance Hostsure Insurance 

protecsure-logo QBE Public Liability Insurance

sportsUnderwriting Vero Public Liability Insurance  

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

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* Subject to insurers acceptance

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

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?