| Jury awards in product
liability cases have increased dramatically since 1993,
when the median award came to $500,300. According to
the latest data, the median award rose to $1.8 million
by 1999. Most claims resulting in high jury awards arise
from automobile defects, other transportation items,
and medical claims. However, any manufacturing or distribution
business should be concerned with product safety issues.
Regardless of the product — food, medicine,
or electrical components — problems can develop.
Protection against product liability claims starts with
risk management procedures to assure that a safe product
reaches the public. A number of insurance coverages
can help protect against product claims:
- Product Recall coverage pays the
costs of recalling known or suspected defective products
— a major potential exposure for any manufacturer.
- Product Tampering or Adulteration
coverage should attract drug manufacturers and food
processors. It protects against intentional product
sabotage.
- Product Rejection or Condemnation
coverage insures exported products against rejection
or condemnation by an importing country’s inspectors,
usually for spoilage.
If your business is concerned about product liability
claims let us analyze your product liability risks.
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