FISCHER RISK MANAGEMENT / RESOURCES
Start with the allegation: did the product injure someone or damage property, or is the customer alleging a financial loss from poor performance? Those questions lead to different parts of an insurance review.
Request an Insurance ReviewYour customer says the product failed. That sentence alone does not tell you which policy to examine. What failed, what loss followed, and what the customer is asking you to pay all matter.
Product liability review commonly concerns allegations of bodily injury or property damage involving a product. Product E&O, also called manufacturers E&O in some programs, concerns certain allegations of financial loss arising from product or service performance. Chubb explains this distinction in its manufacturers E&O overview. The overview describes its product, not every policy available.
Imagine a shelving component is alleged to have caused a collapse that damaged another business’s property. That starts a product liability discussion. Now imagine a component does not meet a customer’s production specification and the customer alleges lost output, without alleging injury or physical damage. That starts a separate product E&O discussion.
These are hypothetical illustrations, not client stories or predictions that either claim would be covered. Real claims may involve several kinds of loss and more than one policy.
For a useful review, describe what you make or supply, how customers use it, and which performance commitments appear in your agreements. Include any services bundled with the product, such as design, installation, configuration, or support.
Removing products from the market raises different cost questions. Do not assume that a product liability or E&O label answers them. Chubb’s overview separately identifies recall exposures. Read the product recall guide and ask which expenses and triggering events the proposed wording addresses.
That requires a review of your business and the available terms. A manufacturer, distributor, and brand owner may have different roles even when they handle the same product. Start by mapping those roles and customer dependencies, then compare proposals against that description.
Customers depend on your product to perform? Tell Cory what it does, how it is used, and what prompted your insurance review.
General educational information. Examples are illustrative. Coverage depends on the facts, applicable policy terms, underwriting, and applicable law. Submitting an inquiry does not bind, amend, or cancel coverage.