Paracfiuln tquipmnnt Industry ilssnuiatiun - Parachute Industry ...

Parachute Equipment Industry Associati >nr Irc,
September l-0 , l9B 2
Page Four
Another significant aspect of Condition 4 i:; Lhe insured's clutv
to promptly take alI reasonable steps, at tlre i.nsured,s expens!,
to correct any suspected generic problems. For example, if an
lnsured suspects a i'rad batch of nat-erial, ov tf one accident
indlcates a possibly faulty design of some particular cotrlponent,
the lnsured may have Eo recall the product from the rnarket or
take some other steps to remedy the sir,uati,rn tc Dr--vent cLher
accidents regulting frorn the same !.roduct. defect. If the lnsured
ever has reason to suspect any generic product defect, he simply
must noCiEy Avencc and prcmptly take aII reasonable steps to
remedy the defecE. If lre does not:lc so, exposure will certainly
increase drarnatically and alI coverage under the poii:y may be
Iost.
As a last :,uggestion, the insuretJ ,nust understan,l what ceverage
is not av.ril:ble under Avemco's Pr.ducts Lia.riIit-y p,rlicy, and
make sure t.hat he has eCe.luate coverarle Eor those risks not covered.
For examD -e, hhe pol icy does not cover in juries to the insure.'l' s
ernployeef which worrld be ccvereil rtnder a iiorkman's ilonlpensation
policy. Likewise, tne policy does not c,)ver ilamage tc the prcducl--
itself, or damages r,osulting from a prcduct,lefect';hieir occur,)n
the ins rred's oremises. Other ri-,:ks are also not ,--overed, and
the irr:ur9d shoul,l perirrC:.ca1ly review his total insur:nce neecls
wi'-h a competent broker or other atlvisor.
I
Ix slnmary, Avenco's Products LiabiliEy policy appears to be a
goo,i one, and one we would recomnend to FaI\ menbers. Cer:ainly
rnogir if not a.11, PEIA members slro',rId c,rrr)'some poiicy of prcducts
I j r..: iI ity insurance .
rf the Association has any furiirer- quesLions on t:tis cr alty oEher
; atter, olease Eeel ,rel-come to (:aI ! )r rriie Scott ')r :le.
Sincerely,
HAMIL'ION e HrLL, f.i.
tzl/
,'12"r a:dr6-
!Ii. lI iam ilhit:e
rrr/./ :fcf