Long-tail exposure
Stopping sales does not stop future product claims.
Products remain in homes, factories and supply chains long after the last invoice.
Occurrence exposure continues
Under an occurrence form, a future injury may trigger the policy in force when the injury happens—not necessarily the policy that existed when the product was made. Maintain appropriate coverage while products remain capable of causing claims.
Sale of a business
Asset and stock transactions allocate liabilities differently, but a contract cannot guarantee that a claimant will honor that allocation. Coordinate insurance, legal and transaction advice before closing.
Claims-made runoff
If coverage is claims-made, extended reporting or runoff may be required. The length should reflect product life and limitation/repose considerations.
Preserve evidence
Keep old policies, sales data, manuals, designs, test results, complaint records and transaction documents.
Product liability guidance