You’ve probably noticed that updated policies from some insurance companies usually include tightened coverages concerning product liability insurance. There are new exclusions, more precise and specific verbiage, and more limited coverages. Essentially, some insurance policies are becoming more restrictive as the insurance companies become more specific in what risks they want to take. But not all insurance companies are taking this route.
Insurance Companies Track Data & Refine Policies
As claims and lawsuits test the coverage limits of a policy, insurance companies watch the case results to see what rulings will become precedent for future claims and lawsuits. When coverage verbiage comes into question during a claim, companies will monitor the decisions and outcomes so they can make necessary changes to avoid repeating the same verbiage conflict.
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Let’s say a company makes a nutraceutical product, like a vitamin capsule, that helps people absorb nutrients from food more efficiently. On the product label, it specifically states that users should consult their physician before taking the product, and that sometimes an allergic reaction could occur. That should cover the business, right? I mean, it says right there that a risk of allergic reaction is present. Unfortunately, people don’t always read product warning labels and disclaimers, and not everyone heeds the warnings or realizes that they have a condition that will result in a negative reaction to the product.
So what happens if someone ends up in the hospital for severe digestive problems or an allergic reaction to the product? They could sue the company and demand paym
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We are often asked, “Why am I classified as the manufacturer when I don’t manufacture anything?” The simple answer is that you may be the only person in the U.S. that is legally liable for damages caused by the product.
If you import any products or ingredients from a foreign country, then you will be considered, and be held liable as, the manufacturer, whether or not you are physically manufacturing your products.
Thousands of product liability claims are made against businesses every year for defects in design, products, and marketing. Lawsuits are being filed for dangerous side effects, improper assembly, failure-to-warn, and breach of warranty; all of which can be, and are, brought against companies who don’t directly manufacture a product. Costs for such litigation can be devastating to a business.
If you are an importer, distributor,
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With the insurance industry becoming increasingly specialized, placing certain types of businesses can be difficult. One industry that is notorious for being more of a challenge is the home builders industry. With the economy back on the rise, this class of insurance has seen tremendous growth within the past several months and looks like it will continue to grow steadily. For these reasons, it is important that you work with a brokerage that specializes in writing insurance policies for home builders.
Why Is Placing Insurance for Home Builders so Difficult?
Due to the fact that we are trending towards a hard market, carriers are more reluctant to take on higher risk businesses like home building. In addition to being more reluctant, if a carrier is willing to write the policy, then they are also tightening up their appetite and being more selective in whom they
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Most businesses carry a general liability policy with limits up to one million dollars. While this amount may appear to be sufficient, in our litigious society it can become insignificant very quickly. It is not uncommon for the courts to hand out multi-million dollar judgments for bodily injury claims. Settlements and other expenses related to the claim can often exceed the coverage limits purchased, putting a business and personal assets at risk.
How Do I Get More Coverage?
One way to provide additional protection to your business is through an excess liability policy. This type of policy would increase your gener
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