Product Guarantee Financial Loss

A product guarantee is a promise made by a manufacturer or seller to the consumer that the product will perform as expected or specified. In the event that the product fails to meet the specified standards, the manufacturer or seller may provide a remedy, such as repair, replacement, or refund.

Financial loss can occur when a product fails to meet the guaranteed standards, and the consumer incurs costs or damages as a result. For example, if a product with a guarantee fails and damages other equipment, the cost of repairing or replacing that equipment could be considered a financial loss.

In some cases, a product guarantee may specifically include coverage for financial losses that result from the failure of the product to meet the promised standards. However, not all guarantees will provide this type of coverage, so it’s important to review the terms and conditions carefully before purchasing a product or relying on its guarantee.


  • Accidental Contamination
    Any accidental or unintentional contamination, impairment or mislabeling of an insured members’ product, which occurs during or as a result of its production, preparation, manufacture, packaging or distribution.

  • Malicious Tampering
  • Any actual, alleged, threatened, intentional, malicious and wrongful alteration or contamination of the insured’s product so as to render it unfit for use or consumption or to create such impression to the public, whether caused by employees or not.
  • Product Extortion
    Any threat or connected series of threats to commit malicious tampering, for the purpose of demanding ransom monies. The policy provides cover for recall expenses, consultants costs, advisor costs, and extortion costs.


  • Any illegal act of any of the insured’s directors, officers or trustees.
  • Changes in population, customer tastes, economic conditions, seasonal sales variations, or competitive environment.
  • War
  • Terrorism

    How can we help you?

    Quick Links
    Bankers Indemnity Insurance Policy Clinical Trials Liability Insurance Policy Commercial General Liability Insurance Policy Contaminated Products Insurance policy Directors and Officers liability insurance policy Errors and Omissions Indemnity Cyber Liability Insurance Credit Insurance Policy Crime Insurance Policy Public Liability Insurance Product Recall Insurance Policy Product Liability Insurance Pollution Legal Liability Insurance Professional Indemnity Insurance Policy Public Liability Industrial and non Industrial Kidnap/Ransom and Extortion Insurance Public Offering of Securities Insurance (POSI) Umbrella Liability Insurance Policy

    OUR PARTNERS