Product Liability Claims

1
Product Liability Claims

• The Old and the New
• Andrew Robinson ACII FCILA
• Cunningham Lindsey Liability Services

2
Product Liability Claims

• A brand promise can be amassed as a hollow
  boast at almost any point during a customers
  experience with a company, product or service.
  Each interaction represents a moment of truth
  that can enhance or erode the brand, heighten or
  undermine customer loyalty and affect business
  results, for better or worse.

3
Product Liability Claims
4
Product Liability Claims

• What is damage for the purpose of policy cover
  ?
• What consequential losses are recoverable under
  the terms of the policy ?

5
F H Contractors v Commercial Union (1993)
6
Concise Oxford Dictionary

• injury impairing value or usefulness
  

7
Bacardi Martini Beverages Ltd v Thomas Hardy
Packaging (2002)
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(No Transcript)
9
Pilkington UK v CTU Insurance (2004)

• generally speaking, damage requires some
  altered statethis plainly covers a situation
  where there is a poisoning or contaminating
  effect upon the property of a third party as a
  result of the introduction or inter-mixture of
  the product supplied

10
Seele Austria v Tokyo Marine (2007)

• adverse physical effect on the physical state of
  the works, as a result of the defect

11
Is there Damage ?
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Product Liability

• 1. Do you understand the nature of the
  Policyholders business ?
• 2. Do you understand the exposure the
  Policyholders business will encounter ?
• 3.Can agreement be reached up front between
  Insurer and Policyholder, relative to the
  exposure and what constitutes damage ?

13
A S Screenprint v British Reserve
14
The Chemical manufacturer
15
Current Issues !
16
The Multi-tool Product
17
The Bar Stool
18
Recovery from Abroad

• The jurisdiction issue !
• Which law ?
• Enforcement of Judgements !

19
Product Recalls
20
Product Recalls
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The Military Recall
22
The Motorcycle Recall
23
The General Product Safety Regulations 2005
24
The General Product Safety Regulations 2005

• 1. Suspension Notices
• 2.Requirement to warn
• 3 Withdrawal notices
• 4 Recall notices

25
Summary

• The Damage debate will continue.
• Claim numbers will likely increase.
• Overseas recoveries will not get any easier.
• There will likely be an increasing need for
  Product Recall cover.