Manufacturers
Coverage should reflect how the product is designed, built and used.
A manufacturer’s risk changes with materials, tolerances, end uses, quality controls and the consequences of failure.
Underwriting the process
Expect questions about product descriptions, annual sales by product, years manufactured, customer industries, safety-critical uses, standards, testing, written quality controls, supplier qualification and loss history. Clear answers help an underwriter distinguish the actual risk from a broad classification.
Design, manufacturing and warning allegations
A claimant may allege a defective design, a manufacturing deviation, inadequate instructions or a failure to warn. Contract manufacturers can face allegations even when another party owns the design. Product liability should be coordinated with manufacturers E&O when failure could create financial loss without bodily injury or property damage.
Batch control and traceability
Lot numbers, supplier records, inspection documentation and a written recall plan can reduce uncertainty when a defect is suspected. They also help determine which units are affected instead of treating every unit as exposed.
High-consequence end uses
Components used in vehicles, aircraft, medical devices, life-safety systems, children’s products, food, machinery or structural applications may need specialized underwriting. Disclose the ultimate end use—not merely the component name.
Product liability guidance