A product insurance proposal is a document which proposes that one party, usually an insurance firm, shall pay for any damage occurring to the product of another company, usually the manufacturer, as a result of various reasons like accidents, natural disasters, riots and so on. By insuring a product, the manufacturer ensures that he will not face huge losses in case some unfortunate incident happens. It is like insurance proposal such as car insurance or insurance of houses. The firm pays for the damages incurred by the manufacturer in return for an annual premium that must be paid to the insurance form. It is a small amount to be paid in case there is serious loss faced by the manufacturer.

Sample Product Insurance Proposal:

Name of insured company: Stylish Hair Dryers

Address: 297 Northcross Mall, Dallas

Phone number: 42423556

Website: www.stylish.com

Email ID: customercare@stylish.com

Year of starting business: 1999

Name of proposal: Product Insurance proposal

Description of products: We manufacture hair dryers of different types and models

Purpose of proposal: To insure our products are safe and in case there is any damage to the product due to natural, manmade or accidental reasons, we will be compensated for it in return for a premium amount

Period of insurance: December 5, 2010 to December 4, 2020

Details of product liability proposal:

  • We follow all the safety procedures and rules laid down by the country
  • Our products are stored in secured conditions and transported using all the precautions
  • We shall be willing to pay up to $50,000 for insurance of our products