The growth of the global economy and product distribution has led to a corresponding rise in multi-jurisdictional law-suits. Differing legal and regulatory standards in different territories create a breeding ground for legal action against product manufacturers and distributors. Regulators and lawyers are increasingly watching developments in other countries, further facilitated by digital communication via social media and public online databases such as the OECD Global Recalls Portal. RKH Specialty Specialty's new Products Liability facility provides an insurance solution that responds to these developments.
Whilst international regulatory product standards offer the future prospect of greater harmony and clarity, the current reality is an increasing cost of compliance and certification for firms. This is particularly the case in the US, where recall standards are becoming more stringent under the Consumer Product Safety Commission’s newly enhanced powers, and the trend for extremely high damages payouts awarded by juries continues upward.
The statistics show that product related issues are not just related to high profile, high-tech and complex products, the vast majority of injuries are linked to a range of everyday household items. For example, the Center for Injury Research and Policy at Nationwide Children’s Hospital in Columbia found that nozzled bottles are responsible for an increasing number of injuries to children related to household cleaning implements. The U.S. Consumer Product Safety Commission identified extension cords responsible for around 4,700 residential fires, 50 deaths and 280 injuries a year. Indeed in 2012, there were 709,000 serious injuries caused by defects in beds, and 714,000 injuries related to tables and chairs in the U.S.
RKH Specialty Specialty's new Products Liability facility provides cost-effective coverage for tougher liability classes such as E-cigarettes, trampolines, nutraceutical, furniture, electrical and consumer products. The facility is backed by Lloyd's of London (recognised in over 40 Countries), and it offers the ability to provide state of the art enhancements that assist clients in mitigating and controlling their product liability exposures.
Contact Justin Whitehead to find out more.