Warning: hazard warnings may be an unsafe defense

Article Abstract:

The case of Rose Cipollone vs the Liggett Group presents insurance writers with a troubling prospect: that claimants alleging breach of the common law duty to warn consumers of the health consequences of products are only entitled to claim that false advertising persuaded them to use the product. In providing a ruling favorable to a plaintiff, a court could, theoretically, claim that injuries incurred through false advertising fall under the heading of advertising liability. The ruling is an incentive for underwriters to write commercial products and advertising injury coverages separately.

Cases, Laws, regulations and rules, Product liability, Products liability, Products liability insurance, Product liability insurance, Cippolone, Rose

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Sprinklers pass the riot test

Article Abstract:

The Los Angeles Riots of 1992 proved the value of automatic sprinkler systems, at least from a property underwriter's perspective. Of the 64 buildings in the riot area, 63 received only superficial fire damage. The only building that burned down was a supermarket whose sprinkler system had been turned off. According to the Fire Sprinkler Advisory Board of Southern California, sprinkler systems prevented $187 million worth of property losses, and they exceeded their design requirements by actually extinguishing all fires save two.

Economic aspects, Equipment and supplies, Risk management, Fire prevention, Fire sprinklers

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