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Article: 1977: How "the other side views product liability".(THE BACK PAGE)
- Article from:
- Wood & Wood Products
- Article date:
- January 1, 2006
CopyrightCOPYRIGHT 2006 Vance Publishing Corp. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Much has been written lately about the seemingly uncontrollable increases in product liability premiums. Some manufacturers, especially the smaller ones, find it impossible to pass the higher costs on to their customers and remain competitive.
What are some of the reasons for the costs, which threaten the continued existence of some equipment manufacturers?
1. Juries have been granting cash judgments out of proportion to the injury sustained. Six-digit awards are common and there have been some in excess of $1 million. Rates are based on prior experience and nothing in the past prepared underwriters for these inflated values.
2. In applying the ...