Product Liability
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Product Liability?
Product liability insurance is intended for companies and business operators that manufacture and distribute products. The insurance covers product liability that may fall on the insured for personal injury or damage to property.
What Is Covered?
Liability for personal injury or property damage caused by a defective product.
Liability for property damage caused by the incorporation or mixing of a product.
What Is Not Covered?
Damage to the product itself.
Loss, expenses, or costs arising from the recall of products, the manufacture or delivery of replacement products, repair, destruction, removal, or similar measures due to defects in the sold product.
Loss of profits, loss of use, or other indirect losses.
Damage caused by products used in the operation of motor vehicles or aircraft where the product contributes to or causes the risk of a traffic or aviation accident.
Pure financial loss not connected to compensable personal injury or property damage.
Fines or other criminal penalties.
Damage attributable to pollution, except where liability arises from a sudden and unforeseen event.
Damage caused by defective products sold or delivered after their sale has been prohibited.
Damage caused by acts of terrorism.
Damage caused by any kind of biological or chemical effects and/or poisoning, including bacteria and viruses.
Damage directly or indirectly, in whole or in part, arising from asbestos or containing asbestos.
Damage directly or indirectly, in whole or in part, arising from any effects of date/time recognition (time recording) on the operation of equipment and systems.
Damage directly or indirectly, in whole or in part, arising from supervision or consultancy related to the effects of date/time recognition on the operation of equipment and systems.
Damage directly or indirectly, in whole or in part, arising from health issues related to tobacco, nicotine, or tobacco-related products.
Damage directly or indirectly, in whole or in part, arising from vaccines, medicines, or contraceptives.
Damage directly or indirectly, in whole or in part, arising from medical devices, silicone products, or medical implants in the body.
Damage directly or indirectly, in whole or in part, arising from chemical products.
Damage directly or indirectly, in whole or in part, arising from infections transmitted from animals.
Damage directly or indirectly, in whole or in part, arising from explosives, fireworks, gas, or volatile petroleum products.
Are there any restrictions or precautionary rules?
The insured must: - Comply with official rules and regulations regarding chemical formulations and mixtures. - Provide accurate and non-misleading information about the properties or use of products sold or otherwise supplied, for example in sales materials or instruction manuals. - Ensure that products sold or otherwise supplied undergo mandatory quality control before being placed on the market, and carry out any tests and analyses required by the authorities. - Not place a product on the market that the insured knows, or ought to have known, has harmful properties. If a manufactured product may develop hazardous properties after being stored for a certain period, clear markings indicating the expiry or use-by date must appear on the packaging. The insured and any parties associated with the insured must comply with the precautionary rules set out by the company in these terms and conditions or in the policy schedule. Failure to do so may result in a reduction or forfeiture of compensation in accordance with Article 26 of the Insurance Contracts Act.
Where is the insurance valid?
The insurance covers only losses that occur in Iceland.
The insurance also covers losses occurring outside Iceland if such coverage is specified in the policy and the relevant premium has been paid.
What are the insured's obligations?
To answer all of Vörður’s questions relating to risk assessment truthfully and in good faith.
Provide all necessary information, whether in connection with the renewal or modification of the insurance.
Report any damage at the earliest opportunity and no later than one year from the date of the incident.
To attempt to prevent or minimise loss. The insured must comply with the company’s instructions aimed at limiting the loss.
To notify the company without delay of any change in the business activities of the policyholder/insured.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does the insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.