A defective product (eg spoiled food, machinery or materials) can cause property damage or personal injury. For example, a faulty cable can cause a short circuit and this in turn can cause a large fire. Wrong temperatures during food production lead to food whose consumption causes poisoning, etc.

These type of incidents can cause significant financial losses to a manufacturer, as according to the civil code, anyone who has suffered bodily injury or property damage due to a defective product can turn against the manufacturer and demand compensation.

Οι αποζημιώσεις αυτού του τύπου μπορεί να ανέλθουν σε μεγάλα ύψη, μιας και θα πρέπει να τονισθεί ότι η δικαιοσύνη είναι ιδιαίτερα ευαισθητοποιημένη σε παρόμοιες περιπτώσεις.

Compensations of this type can reach great heights, since it should be emphasized that the justice system is particularly sensitive in similar cases.

These damages may be covered under the product liability policy. In addition, the extra costs that the producer will have to pay in order to withdraw this product from the market may be covered.

These policies vary from company to company, with the range of coverage and exclusions varying widely. Therefore, special care is needed in order for such a contract to fully cover the needs of the manufacturer.