Insurance Coverage Q&A: Product Liability Errors and Omissions
Questions whether coverage under a Printers E&O policy will cover box replacements in a situation where the original boxes were not packed according to industry standards.
February 15, 2021 at 05:07 AM
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Our client manufactured packaging to industry standards for frozen meat products. The client sold the packaging for frozen food products to be stored horizontally. Their customer then packed the packaging with products outside of the industry standards and sold the products to a third party. The client placed fresh meat in the packaging and sold the product for storage vertically. Excess moisture went to the bottom and seeped out.
The carrier is providing liability for the lawsuit for property damage but my customer is not being paid for $100,000 of boxes they made. Their customer used the product according to industry standards from that point forward. The carrier form, Printers Errors and Omissions Liability Including Correction of Work, which includes coverage for product recall, is attached. Would the Printers Errors and Omissions Liability form provide coverage for my client’s boxes?
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