Litigated claims could impact reputation and market share in ways no policy can cover. Here’s how proactive risk mitigation reduces the expense.
By: The Hartford | June 1, 2021
White Paper Summary
Product liability claims in the life sciences industry are unique. In many cases, the products in question make a direct impact on consumers’ health. When they don’t perform as intended or cause an injury, the consequences can be severe. Especially in the context of social inflation, product liability claims can potentially cost life sciences companies millions.
What many in the industry don’t realize is that a portion of these costs can’t be recouped from a product liability policy.
“These unexpected costs can be categorized as immediate or deferred costs. Immediate costs would include additional legal costs to respond to heightened regulatory scrutiny incurred after a claim. It also includes losses absorbed in attempts to restore reputation. Companies may need to offer discounts or refunds, for example, to retain existing business, which may not be reimbursable damages under a customary insurance policy,” said Tom Morelli, Claims Representative in The Hartford’s Major Case Unit.… read more > “3 Ways Life Sciences Companies Can Reduce the Non-Insurance Costs of Product Liability Claims”