Product liability becomes an worldwide important issue. The Term “product liability" means liability arising out of goods or products manufactured, sold, handled or distributed by someone. In the case of product liability, a plaintiff is injured by the use of an defective product. In korea product liability law was enacted in the year of 2000. Since July 2002 the law is effective. At the same time the new insurance polices are available. Product liability insurance covers injuries caused by consumer products that are defectively manufactured, defectively designed, or defectively marketed, for example with inadequate warnings or instructions for use. An injured consumer normally can bring an action against the defective products manufacturer or retailer and its insurer under a negligence theory. Product liability insurance is a kind of liability insurance. Almost all product liability actions are covered by the product liability portion of the insurance policy, If the occurrence occurs after possession of such goods or products has been relinquished to others by the Assured and if such occurrence occurs away from premisses owned, rented or controlled by the assured. we should solve the problems arising from the situation that insurance company A initially provides products liability coverage, but the product-related injury or disease does not manifest itself until some years later and that insurance company B or C is providing similar coverage to the same manufacturer for its defective products. Which insurance company is ultimately liable for those injuries? Three distinct legal theories habe involved to answer this question：the “exposure" theory, the “manifestation" theory and the “injury in fact" theory. And product liability coverage only applies to occurrences which occur away from the insured's premises and after the goods habe been transferred.

Product liability becomes an worldwide important issue. The Term “product liability" means liability arising out of goods or products manufactured, sold, handled or distributed by someone. In the case of product liability, a plaintiff is injured by the use of an defective product. In korea product liability law was enacted in the year of 2000. Since July 2002 the law is effective. At the same time the new insurance polices are available. Product liability insurance covers injuries caused by consumer products that are defectively manufactured, defectively designed, or defectively marketed, for example with inadequate warnings or instructions for use. An injured consumer normally can bring an action against the defective products manufacturer or retailer and its insurer under a negligence theory. Product liability insurance is a kind of liability insurance. Almost all product liability actions are covered by the product liability portion of the insurance policy, If the occurrence occurs after possession of such goods or products has been relinquished to others by the Assured and if such occurrence occurs away from premisses owned, rented or controlled by the assured. we should solve the problems arising from the situation that insurance company A initially provides products liability coverage, but the product-related injury or disease does not manifest itself until some years later and that insurance company B or C is providing similar coverage to the same manufacturer for its defective products. Which insurance company is ultimately liable for those injuries? Three distinct legal theories habe involved to answer this question：the “exposure" theory, the “manifestation" theory and the “injury in fact" theory. And product liability coverage only applies to occurrences which occur away from the insured's premises and after the goods habe been transferred.

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