Junggi Joonganghoe Operates PL Group Insurance... Providing Reliable Protection for Both SMEs and Consumers

[Asia Economy Reporter Kwak Minjae] The Korea Federation of Small and Medium Business (KOSME) announced on the 29th that it operates a PL group insurance in partnership with six non-life insurance companies, including Samsung Fire & Marine Insurance, to compensate third parties for bodily injury or property damage caused by defects in products manufactured, sold, or installed by small and medium enterprises.

KOSME explained that the PL group insurance provides great benefits to both SMEs and consumers through affordable premiums and prompt accident handling services. Over the past five years, it has handled an average of about 600 cases annually, compensating approximately 4 billion KRW per year.

Since the 2017 revision of the Product Liability (PL) Act, the burden of proof for product defects has shifted from the victim to the manufacturer, and with the introduction of punitive damages, the necessity for SMEs in manufacturing to subscribe to PL insurance has increased significantly.

In particular, KOSME’s PL group insurance offers the advantage of providing the same coverage conditions at premiums up to 28% cheaper than general non-life insurance companies through a group subscription method in the form of joint purchasing.

Additionally, KOSME collaborates with 14 local governments to refund 20-30% of the paid premiums, providing substantial support to SMEs.

Park Yongman, Head of the Mutual Aid Business Division at KOSME, stated, “The support for PL insurance premiums from local governments has eased the burden of PL insurance subscription for many SMEs,” and added, “We will continue to work closely with various local governments to expand support for PL insurance premiums.”

This content was produced with the assistance of AI translation services.