Product Liability Insurance
What is a Product Liability?
What kind of events can trigger a Product Liability Claim?
Do you really need Product Liability Insurance?
“I’m just a distributor. I shouldn’t have to pay much for my insurance.” Not so fast! You’re probably much more than a distributor. To find out, take this quiz:
- Do you import your product?
- Do you have your product made to your specifications?
- Is the product your name brand product?
- Did you create the instructions or warnings for your products?
If you answered “yes” to any of these questions, you are more than a distributor in the eyes of the law and your insurance carrier.
If you are an importer, you are seen as the manufacturer in the U.S. because it is deemed too expensive and complicated to pursue claims against foreign manufacturers. If you bring foreign products into the U.S. market, the burden of safety belong to you.
If you have a product built to your specifications, then design defect claims belong to you.
If you designed the product, you are probably responsible for the content of the instructions and warnings, and any instruction/warning claims belong to you.
If the product is your name brand product, many state laws require that you have the name of the manufacturer clearly printed on the product label.
If it is not clear, then you will be treated as the manufacturer of the product.
What does Product Liability Insurance Cover?
- Medical Technology Companies
- Medical Device Manufacturers
- Life Sciences Companies
- Process/Control Design Manufacturers
Specialty insurance carriers design coverage forms specifically tailored to these industries. Some of the additional coverages that are included in a stand-alone products/completed operation policy are:
- Worldwide Coverage
- Vendors Additional Insured Coverage
- Scientific Advisory Boards
- Sales Representatives
- Clinical Trails
- Clinical Research Organizations
- Clinical Research Coordinators, Monitors or Investigators
- Investigational Review Boards or Medical Ethics Committees
- Independent Engineers or Consultants
- Medical Staff Members
- Professional Services
- Known or Foreseeable Side Effects.