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.