Insurance Coverage for Manufacturers With Consumer or Product Liability Claims

In the current financial environment, counsel for product manufacturers is under constant pressure to minimize the cost of defending, litigating, and settling consumer and product liability claims. At the same time, these types of claims have dramatically increased.

Insurance coverage can help deal with this situation, but insurance carriers have instituted their cost-cutting measures to limit the defense costs owed and the requirements insurers impose on a company can interfere with the company's customer and supplier relationships.

From understanding the company's current coverage and meaningfully assessing that coverage, to strategically using insurance coverage, to protecting the right to coverage and balancing insurance requirements with customer relations obligations, several options exist for informed insurance coverage counsel to limit client exposure.

Listen as our panel of distinguished insurance practitioners discusses the steps counsel can take to maximize the value of a company's liability insurance coverage and minimize costs for any potential litigation or claims against the product manufacturer client.

1. Understanding the company's coverage
   1. Taking stock of all policies
   2. Analyzing the coverage that each policy provides
   3. Determining what coverage is available
   4. Ensuring that all policies are retained
2. Making a meaningful coverage assessment
3. Strategically using insurance coverage
   1. Timely notifications related to the claim
   2. Duty to cooperate
   3. Exerting control over litigation
4. Protecting the right to coverage
5. Balancing insurance requirements with customer relations obligations
   1. Determining whether a customer complaint is a claim
   2. Deciding whether to resolve the claim without the insurer's permission
6. Final thoughts and practical considerations

The panel will review these and other key issues:

• Why are historical insurance policies significant?
• What is the distinction between occurrence and claims-based policies?
• What role do exclusions, endorsements, pro-rata allocation, "all sums" allocation, deductibles, and self-insured retentions play?
• How should counsel for a product manufacturer best approach the duty to notify and the duty to cooperate?
• How can counsel best determine the extent of coverage provided?
• How should counsel address potential conflicts of interest between a manufacturer and its insurer?
• How can counsel help protect the manufacturer's relationship with its customers and suppliers?
• What is the impact of a reservation of rights letter?
• What is the significance of bad faith claims in the context of consumer or product liability suits against a product manufacturer?