Castle Rock Insurance Agency

6 Largest Products Liability Insurance Suits

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Written by Brett Lipton President - CIO   
Friday, January 16, 2009

Products Liability Insurance Quote

Products Liability Claims

Manufacturing, distributing, marketing and reselling products can often seem like a harmless venture until there is a Product Liability Suit.

However, from time to time, and lately more frequently, issues arise that cause damages, injury and even death. When they do lawsuits ensue. When several people get involved in the lawsuit, class action lawsuits ensue which have the potential to be catastrophic, often costing manufacturers or their insurance companies millions or even billions of dollars.The following are major instances of Product Liability Claims, and they include recalls. Ironically recalls are often excluded from Product Liability Insurance Policies. Aside from severe cases, product Liability Suits can strike small jewelry designers, toy manufactures, clothing designers & manufacturers and to this day the thundering repercussions of paint manufacturing companies that used lead still echo through real estate owners looking for insurance. The following are the 6 of the largest Product Liability Suits, in order of smallest to largest by claim value adjusted for 2008 inflationary factors.

Number 6 Product Liability Suit

February 2002

Ford Motor Company Featuring Bridgestone Tires

Product Liability Suit - Faulty Tire Recall

Claim: Faulty Tires Causing Blow Outs, Roll Overs, Injury & Death by Having "Substantial Failure Risk"

Participants: 13.5 Million Vehicles

Individual Payment Range: $200 to $400

Claim Amount: Approx $1,100,000,000

Product Liability Cost adjusted for 2008: $1,285,400,000

 


Number 5 Product Liability Suit

December 1998

Owens Corning

Product Liability Suit - Asbestos Building Materials

Claim: Asbestos Building Materials Causing Mesothelioma, Cancer &  Death

Participants: 176,000 Individuals

Product Liability Claim Amount: $1,200,000,000 - 1.2 Billion Dollars

Product Liability Cost Adjusted for 2008: $1,548,400,000 

 


Number 4 Product Liability Suit

May 1995

Dow Chemical

Product Liability Suit - Silicone Breast Implants

Claim: Silicone Breast Implants Rupture Causing Injury, Bodily Damage, Scleroderma & Death

Participants: 400,000+ Women

Individual Payment Range: $105,000 to $1,400,000

Claim Amount: $4,250,000,000 - 4.25 Billion Dollars

Product Liability Cost adjusted for 2008: $5,863,000,000 

 


Number 3 Product Liability Suit

August 1999

General Motors Corp

Product Liability Suit - Faulty Gas Tank on the 1979 Chevrolet Malibu

Claim: Faulty Gas Tank Caused Fatal Gas Tank Explosions

Product Liability Claim Amount: $4,900,000,000 - 4.9 Billion Dollars

Product Liability Cost adjusted for 2008: $6,183,000,000 

 


Number 2 Product Liability Suit

March 2008

General Motors Corp (Again)

Product Liability Suit - Faulty Chemical Use - Recall

Claim: Dex-Cool Coolant Causing Leaks & Engine Damage

Participants: 35,000,000 GM Customers

Individual Payment Range: $400 to $800

Product Liability Claim Amount: approx $20,000,000,000 - 20 Billion Dollars

Product Liability Cost adjusted for 2008: $20,000,000,000

 


Number 1 Product Liability Suit

December 2002

Philip Morris

Product Liability Suit - Tobacco Products

Claim: Smoking Sickens & Kills People

Product Liability Claim Amount: $28,000,000,000 - 28 Billion Dollars.

Product Liability Cost adjusted for 2008: $32,720,000,000

 

What types of products need products liability insurance?

Essentially any product that is put into market or sold in any venue should have products liability insurance.  Some examples are food, clothing, tools, energy products, furniture, stationary goods, beverages, baked products, luggage, pet items, heating & cooling apparatus, electronic goods, vehicles, toys (especially).

Click here for a List Of Business Classes we Offer Products Liability For.

Also Avialable : International Product Recall Insurance  

Click here for more information on Products Liability Insurance

Because every product is different, underwriting a products liability insurance policy is complicated. As many people have already found out, Castle Rock Insurance Agency is the best stop for a quote on their Products Liability Insurance.  We are the low cost solution for your Products Liability Insurance Policy. Castle Rock Agency currently offers Products Liability Insurance Policy Coverage in New York, NY, New Jersey, NJ and Pennsylvania, PA.

 

6 Largest Products Liability Insurance Suits

 
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