Upstate New York (US) here.
Say I am a small-time maker of some simple electronics product. The product is tested/certified as being compliant with all applicable consumer safety (EMC, SAR, RF, EM immunity, etc.) standards. And because of this, I am able to obtain Product Liability insurance from some carrier.
Now, one of my devices fails and causes a house fire. The homeowner sues and I lose the suit, however, not because this particular device was built improperly or out of band from our (again, tested/certified) practices. It simply failed, which, sometimes electronics do.
Now I wish to file a claim with my Product Liability carrier. How does this work?
The court is awarding X in damages, and I am required to pay by Y time. However, the claim might takes months to go through and be approved. So, from an insureds perspective:
- When should the claim be filed?
- What happens if the insured is required to pay before the carrier has time to approve/deny the claim?