Product liability insurance is not widely used by ordinary people, so many people have no idea what kind of insurance product liability insurance is. In order to let everyone know about product liability insurance, lawyer Peng Songming summarized the following three types of product liability insurance, hoping to help you. Product liability insurance generally has the following characteristics: 1. "Long tail" responsibility: Under normal circumstances, product liability insurance policies based on accidents belong to "long tail" responsibility. Insurance policies issued 30 years ago, including many "long tail" claims for potential damage caused by asbestos or other harmful substances, still occur today. The "long tail" liability puzzles the insurer to accurately predict the final compensation amount, thus affecting the accuracy of insurance pricing. Because the insurer can't foresee the potential damage caused by the insured's products, and these unpredictable claims may be made in a few years or even decades, at that time, changes in the legal environment and inflation may lead to an increase in the amount of compensation, which may lead to the original premium not being able to meet the current payment, so it is easy to have an adverse impact on the business. 2. Strict liability: In the products sold, produced and distributed by the insured, if there are violations of warranty, negligence, infringement and fraud, it may lead to product liability. At present, most product liability lawsuits are based on strict tort liability, which aggravates the liability of the insured. Strict liability focuses on the product itself and whether there is unreasonable danger in the product, and the burden of proof lies with the defendant. Even if the manufacturer does his best in production, the court will still ask the manufacturer to bear the responsibility if there is unreasonable danger in the product. 3. Compensation is based on the laws of different countries, and the compensation is quite different: the compensation of product liability insurance is based on the legal system of various countries, and the legal system of product liability accident damage compensation in different regions and consumers' claim consciousness are different, which determines that the compensation situation of product liability insurance in different regions is different. At present, judging from the number and cases of compensation, the United States has the most, followed by western European countries and Japan. In the United States, in the 1980s, more than 200 insurance companies closed down due to poor management of such insurance. At the end of 1990s, the liability claims caused by asbestos made the global insurance companies and reinsurance companies underwriting American product liability insurance generally downgraded by rating companies such as Standard & Poor's. Further reading: How to stipulate the exclusions of product liability insurance? Product liability insurance clauses in export product liability insurance claim case
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