Insurer off the hook in defective product action

09/09/2015 // JusticeNewsFlash // (press release)

Wisconsin – In accordance with a federal appeals court ruling, an insurer will not be required to defend a product manufacturer in a defective product action due to the time frame in which the complaint was made. Business Insurance reported that a federal appeals court ruling determined that HDI-Gerling America Insurance Co. was not obligated because the claim filed against the policy holder was made prior to the effective-date of its claims-made policy.

 

According to the report, Burlington Graphic Systems Inc. reported to Ritrama Inc., a manufacturer of pressure-sensitive flexible films and cast vinyl films for various applications that there were issues with the products it had been sold by the company. Burlington is stated to have sent Ritrama a spreadsheet that detailed multiple claims for monetary damages in accordance with the product failures.

 

The District Court agreed with the argument presented by Chicago based insurer Gerling that Burlington had made the claim within the meaning of Ritrama’s insurance policy prior to it taking effect, and granted summary judgment.

 

The case is Ritrama Inc. v. HDI-Gerling America Insurance Co.

 

To learn more about manufacturer defects  Justice News Flash follow our manufacturer defects.

 

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Source: Business Insurance News Story Link: http://www.businessinsurance.com/article/20150812/NEWS06/150819940/hdi-gerling-burlington-graphic-systems-ritrama-claims-made-policy?tags=|68|75|83|302

 

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