Products Liability Insurance protects manufacturers, distributors, importers, and retailers against third-party claims for bodily injury or property damage caused by a defective product they supplied, sold, or placed into the market.
A Products Liability (PL) policy covers the legal liability of a business for bodily injury, death, or property damage suffered by a third party, caused by a defect in a product that the insured manufactured, supplied, distributed, or sold. The policy covers damages awarded by courts and legal defence costs. It applies after the product has left your premises and reached the customer or end user, filling the gap that General Liability or premises-based covers leave open.
The policy activates after the product leaves your control and reaches the end user. Every stage of the supply chain can be covered.
Manufacturer
Design, production, or material defects originating at the factory
CoveredImporter
Liability for products imported and placed into the Nigerian market
CoveredDistributor
Claims arising from products passing through your distribution chain
CoveredRetailer
Retail liability for selling or supplying a product that causes harm
CoveredEnd User
The affected third party, bodily injury or property damage claims
ClaimantAny civil legal liability arising from a product defect, whether in design, materials, labelling, or manufacture, is covered up to the agreed limit of indemnity.
Bodily Injury to Third Parties
Compensation awarded to any person who suffers physical injury, illness, or death caused by using or coming into contact with a defective product you supplied.
Third-Party Property Damage
Covers damage to the property of others caused by a faulty product, from a leaking appliance damaging a home to a malfunctioning component causing equipment failure.
Design & Manufacturing Defects
Claims arising from inherent design flaws, manufacturing errors, contaminated raw materials, or assembly faults that make the product unsafe for normal use.
Labelling & Warning Failures
Liability for inadequate instructions, missing safety warnings, incorrect dosage information, or misleading product labels that contribute to a user injury.
Legal Defence Costs
All reasonable legal costs and expenses incurred in defending a covered claim, including solicitor fees, court costs, and expert witness fees, are covered under the policy.
Recalled & Post-Supply Defects
Claims relating to products already in the market that are subsequently found to be defective, where the defect was not known at the time of supply (subject to policy terms).
Any business that manufactures, imports, distributes, or sells a physical product carries products liability risk. These businesses benefit most:
Manufacturers & Producers
Companies that make products for sale, food and beverage, pharmaceuticals, electronics, consumer goods, industrial equipment, and construction materials.
Importers & Exporters
Businesses importing foreign-manufactured goods into Nigeria, as the importer, you take on liability as if you were the original manufacturer under Nigerian consumer protection law.
Wholesalers & Distributors
Distribution companies and agents who supply products to the retail chain, you can be named in a claim even if you did not manufacture the defective product.
Retailers & E-Commerce Sellers
Supermarkets, pharmacies, hardware stores, and online retailers selling physical products, particularly where the original manufacturer is unidentifiable or outside Nigeria.
Consumer protection law in Nigeria places increasing accountability on manufacturers, importers, and retailers. One product claim, without insurance, can wipe out years of revenue. Prestige Products Liability Insurance keeps your business protected throughout the entire supply chain.