Ironshore Inc.’s Specialty Casualty division can now provide dedicated general liability or follow form excess insurance coverage as a separate policy to protect against past or future product liability risk. Transition protection insurance can be underwritten for a period of one to five years to protect insureds against future and/or retroactive claims. Ironshore developed the program to provide a separate policy and set of coverage limits to help companies manage liability risk exposure for discontinued products or operations.
The program is meant to offer an insurance solution in direct response to heightened merger and acquisition activity on the horizon as the economy begins to improve within select industry categories.
Ironshore specialty casualty is offering the insurance coverage with one set of limits to be applied to the policy term. The occurrence period can be in the future, or Ironshore can establish an injury/offense period, which is the timeframe when the claim occurs, to cover potential liability risk resulting from past operations. General liability limits for the coverage can be written for up to $10 million. Minimum premiums are $50,000.
“Companies can now obtain a separate policy to cover liability claims of discontinued products or operations that occurred in the past or may surface in the future,” said Tim McAuliffe, president of Ironshore Specialty Casualty. “By isolating specific liability risk from the regular insurance program, a company can protect its balance sheet from costs associated with unanticipated product losses.”
Transition protection insurance coverage can also protect against going forward liabilities or retroactively increase the limits carried by the product manufacturer that is no longer in operation.
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