Insurance exists to protect against dangers, but given the potentially high stakes, manufacturers should have some understanding of what is covered, what is not, and what are the basics to making an insurance claim.
Dale R. Kurth, Counsel at Partridge IP Law
Insurance coverage isn’t the most thrilling topic. There’s a reason that everybody got the joke in the movie Groundhog Day when Bill Murray’s character finally punched Ned “Needlenose” Ryerson because Ned brought up insurance once too often.
Underlying all that tedium, however, is the potential for protecting great gobs of money that would otherwise come out of your pocket. As a manufacturer, imagine yourself in these three scenarios:
You make electric toothbrushes and are sued for false advertising under federal trademark law
You make glass containers and are sued for the infringement of patents on bottle-labeling technology.
You manufacture synthetic drugs and are a defendant in numerous class actions that allege deceptive business practices.
Real cases? You bet.
The first cost the defendant several hundred thousand in legal costs to mount a defense. The second resulted in jury-awarded damages of $36.5 million. The third involved $39 million in legal expenses and a settlement of $134 million.
