What is the difference between product liability insurance and product quality insurance?

Product liability insurance refers to the insurance in which the insurer bears the liability for compensation when the insured shall be liable for damages to the third party's personal ** or property losses due to defects in its products. Product quality assurance insurance refers to the insurance that covers the liability of manufacturers, sellers or repairers for economic losses such as repairs and re-purchases suffered by users due to the quality problems of the products manufactured, sold or repaired. The difference between product liability insurance and product quality insurance:

First, the nature of the risks is different. Product liability insurance covers the infringements of the insured and is not conditional on whether there is a contract between the insured and the victim. It is based on the civil law systems of various countries.

Product quality assurance insurance, on the other hand, covers the breach of contract by the insured, and is subject to the contract between the supplier and the consumer of the product as a necessary condition. It is based on the legal system of economic contracts. Secondly, the principles of handling are different.

The principle of handling product liability accidents is based on the principle of strict liability in many countries. That is, as long as the victim is not intentionally or self-inflicted, he or she can obtain financial compensation from the manufacturer or seller of the product, the repairer, etc., and receive legal protection. However, the liability for breach of contract in product quality insurance can only be dealt with by the principle of fault liability.

That is, the fault of the manufacturer, seller, repairer and so on of the product is a prerequisite for its responsibility, it can be seen that the principle of strict liability is very different from the principle of fault liability, and its impact on product liability insurance and product quality insurance is also of great direct significance.

Different insurance products vary, you can call your desired insurance company** for advice.

Product liability insurance differs from product quality assurance insurance in the following ways:

1. The nature of the business provided by the insurer is different. One is guarantee insurance and the other is liability insurance;

2. The nature of the fees charged by the insurer is different. The premium charged by product quality assurance insurance is actually a processing fee or labor fee.

3. The subject matter is different. The subject matter of product liability insurance is product liability, and the subject matter of product quality assurance insurance is product quality breach of contract liability.

4. The applicable principles of attribution are different. The principle of fault attribution is applicable to product quality assurance insurance, and the principle of strict attribution is applicable to product liability insurance;

5. The nature of the liability underwritten is different. Product quality assurance insurance covers liability for breach of contract, and product liability insurance covers tort liability;

6. The scope of responsibility is different. Product liability insurance does not compensate for the loss of the defective product itself, as well as consequential losses or expenses incurred.

Extended reading: [Insurance] How to buy, which one is good, teach you to avoid these insurance"pits"

The difference between the two is still relatively large.

1. From the perspective of insurance liability: product liability insurance mainly covers the losses caused to users or third parties during the use of the product, and the part of this loss that should be borne by the insured according to law shall be compensated by the insurance company. In addition, in the case of product liability disputes, the insurance company is also responsible for the compensation of legal costs.

From another point of view, product liability insurance is the insurance company to compensate the insured's customers, and the product quality is to compensate the insured. From the perspective of the scope of risk protection, the two are not at the same level, so it doesn't matter who is big and who is small. However, from the perspective of risk level, product liability insurance is more risky because it may involve personal and uncertain accident risks.

2. From the perspective of premium calculation (i.e., risk control), although both are determined based on the sales of the product, the reference risk coefficient is not the same, and the main impact coefficient of product liability insurance is the compensation limit, product characteristics and operational risks, as well as the compensation situation over the years. These three points almost determine the main risks of product liability. The main risk factor of product quality insurance is the quality control system of the product, that is, whether the production process of the product is advanced, whether there is relevant national or international certification, and at the same time refer to the cumulative compensation limit, the sales volume of the product, the compensation in previous years, etc.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"