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General Liability Insurance Including Products Liability Insurance For Manufacturers, Distributors, Installers, Importers, And Sellers Of Products. Save Up To 38%!Understanding The Differrences Between Product Liability, Product Recall and Impaired PropertyOne of the most common confusions for many of the prospects and customers I come in contact with is there understanding the differences between Product Liability, Product Recall and Impaired Property.
Many people will wrongly assume that Product Recall and Impaired Products are covered by their Product Liability policy. It is important to note that the standard ISO Product Liability policy form specifically exclude “damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of your product, your work or impaired property.”
The other most common mistake that prospects make when contacting me is assuming “Impaired Property or Products” are covered by a Product Recall policy. The trigger for product recall is when your product has caused bodily injury or property damage or poses an imminent danger of bodily injury or property damage. Impaired Property is “tangible property (other than your product(s)) that cannot be used, or that is less useful, because it incorporates your product(s) that is known or thought to be deficient, defective, or inadequate, but only if such property can be restored to use by the repair, replacement, adjustment or removal of your product(s).” Most calls I receive regarding product recall the prospects are really looking for profit protection in the event they are required to warranty or pull their products because of their product is found to be defective or does not perform as promised and is returned by the end user for a refund. While it is possible to find Product Recall policies that will offer an “Impaired Property” endorsement, it is important to note that the “Impaired Property” endorsement does not cover your obligation to replace your product(s) or to refund the price paid for your product(s). Impaired Property is specifically designed to provide some protection to the third party that incorporates your component or ingredient into the their finished product.
In summary, product liability does not provide coverage for product recall or impaired property and product recall does not provide coverage for impaired property without endorsement and impaired product does not provide coverage to replace or refund the price paid for your products.
Click Here To Print Application For General Liability Quote Including Products Liability Insurance Or Call (800) 622-7370 And Ask For Our Products Liability Department
Sadler & Company, Inc.
3014 Devine St. PO Box 5866 Columbia, SC 29250-5866 Toll Free (800) 622-7370 Local (803) 254-6311 Fax (803) 256-4017 Send Us An Email DBA/AKA Sadler Insurance Agency in CA License #0B57651 Sadler & Company of SC, Inc. - Arkansas (Lic. #254179) Sadler Agency - New York (PC-532473,LA-532473 and BR-532473) Sadler and Company - Vermont (License #577) DBA S&C Agency, Inc in KY (Lic. #624039) Sadler and Company, Inc. in MN (Lic. #20499566) S&C Agency, Inc. (Sadler & Company, Inc.) in OH (Lic. #33890) Sadler & Company Insurance Agency, Inc. in UT (Lic. #105192) |
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