Company Product Liability
The directive concerning product liability was last adopted and revised in 1985. However, last September, the European Commission published a new draft of the directive. The reason for amending the directive is to properly address digital technologies.
Company Product Liability
The new directive should therefore cover liability for digital products – software, but also the ever-growing artificial intelligence. Artificial intelligence is on the rise and thus needs to be legally defined. To revise the product directive, a completely new directive on artificial intelligence liability should therefore be created.
For example, the new draft directive states that computer software will be considered a product. Damages are also extended to include psychological harm, or loss and damage to data. The new proposal indicates that a defect in a product can also be a lack of software updates, as well as a cybersecurity vulnerability. Furthermore, the directive introduces liability for defective products if they are refurbished and re-released onto the market, as well as if they are manufactured outside the EU. The new directive should thus bring legislation into line with market reality. According to the European insurance industry, the directive needs to be set up in a way that does not unduly burden manufacturers while also providing greater consumer protection.
How is your company doing? Do you have your product liability covered? Don't leave this to chance and do not hesitate to contact us. We will prepare a tailor-made solution for you. We are Eurovalley – the best insurance solution or nothing!
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