FAQ Product liability insurance

What is the Difference Between Product Liability and Warranty?

A warranty relates to the functioning of a product. If a product does not work properly or breaks down quickly, the customer is entitled to free repair, replacement, or refund. This falls under the statutory warranty.

Product liability, on the other hand, concerns the damage or injury caused by a defective product. If a product has a defect and consequently causes damage to property or persons, the seller or manufacturer is legally liable for this damage. Product liability thus does not concern the defective product itself but the damage caused by the defective product.