A product liability proposal is a document which ensures that the manufacturer or vendor of a product will be responsible for any damage in the product and pay the customer who has bought the product for any damages caused due to the defects. In this way, the customer remains secure and the manufacturer shows confidence in his products. However, in the rare case if there is any defect in the goods, the manufacturer should insure his products so that he is saved from liability lawsuits and does not suffer a huge loss if he has to give compensations. The defects may pertain to either manufacturing problems or design problems which results in physical injury to the consumer.

Sample Product Liability Proposal:

Name of insured company: Fast Cool ACs Inc

Address: 19 Oak Hill Road, Denver

Phone number: 9283011823

Website: www.appliances.com

Email ID: coolit@appliances.com

Year of starting business: 1995

Name of proposal: Product liability

Description of products: We manufacture air conditioners of different sizes and designs

Purpose of proposal: To insure the products so that in case there is any defect in them and it unfortunately harms the consumer, we are insured from any damages

Period of insurance: December 4, 2009 to December 4, 2019

Details of product liability proposal:

  • Our ¬†company has ISO9001:2000 certification
  • We provide written instructions, manuals and give warnings where necessary
  • Our annual turnover is $992,000 per year
  • We have not had a single case of customer injury due to product defect and none o four products have been recalled due to any defect