Hall of Shame – No Products Liability Coverage For No Reason

This scenario represents an actual coverage flaw in an insurance program of a well run, profitable business.

The General Liability program of a manufacturer included the following endorsement:

The Problem

The company’s website defined their target market to include the Medical, Satellite, and Aerospace Industries!  It was later discovered that client was aware of this gap in their insurance program but was told by their agent that “it was too expensive to insure“.

The Solution

An in-depth investigation revealed the actual exposure to a loss was minimal due to the nature of their product and their contractual relationship with their customers. However, this client did supply a component to several products with a severe loss potential and therefore the cost to defend their liability could be significant as well.  KMRD’s involvement in educating the client and his insurance providers resulted in a renewal that included coverage for all of these exposures at a cost that was less than the previous year!

KMRD’s risk control process would have prevented this from happening.

How KMRD Can Help:

KMRD delivers risk management and human capital solutions to over 600 clients nationwide. Our award-winning team, disciplined approach, proven processes, combined with our risk management portal make KMRD the leading choice to improve business protection and reduce the overall cost of risk.


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