About Us
For two hundred years, the modus operandi of the insurance industry has been to follow the status quo. Today, protecting and growing your business demands a new perspective. It is time for a different way of looking at risk.
LEARN MORE
Team
Koru offers peace of mind by building and managing efficient risk management solutions that align with our clients’ business objectives.
LEARN MORE
Helping Others
Koru Risk Management prioritizes supporting non-profit and community-based charitable organizations dedicated to enhancing the well-being, inclusion, and essential services for our community's most vulnerable members.
LEARN MORE
Commercial Insurance
KORU Korner Overview
Blog
The latest insurance industry news, insights, and thought leadership from Koru Risk Management.
LEARN MORE
News & Articles
The latest insurance industry news and articles to help clients stay abreast of the topics that matter most.
LEARN MORE
Products liability insurance is a type of insurance coverage that provides protection to businesses against financial losses resulting from the production, manufacturing, distribution, or sale of defective products. This insurance product is designed to cover a wide range of risks associated with product liability, including bodily injury, property damage, and personal injury caused by defective products.
Coverage Scope
Coverage for Injury or Damage: Products liability insurance covers claims arising from injuries or property damage caused by a defective product. This can include bodily injuries, illnesses, or property damage resulting from the use or consumption of the insured product.
Manufacturing Defects: It protects against claims related to defects in the design or manufacturing process of a product that render it unsafe for consumers.
Labeling and Packaging Errors: Coverage may extend to claims resulting from incorrect or inadequate product labeling, warnings, or instructions that lead to harm.
Failure to Warn: If a product has inherent risks that are not adequately communicated to consumers, products liability insurance can provide coverage for resulting claims.
Legal Defense: The policy typically covers the legal costs associated with defending against product liability claims, including attorney fees, court expenses, and settlements or judgments.
Importance
Risk Mitigation: Products liability insurance helps businesses manage the significant financial risks associated with potential product-related injuries or property damage, reducing the impact on their financial stability.
Legal Compliance: Having products liability insurance can demonstrate a commitment to responsible business practices and may be required by law or regulation in some industries.
Protection of Reputation: In the event of a product recall or liability claim, insurance can help protect a company's reputation by enabling swift and professional responses to address the issue.
Marketplace Expectations: Many clients, distributors, and retailers may require businesses to have products liability insurance before they will carry or sell their products, especially in industries with high product liability risks.
Each year, contractors face an increasingly diverse array of exposures and a growing list of options for managing those exposures. A common solution is the transfer of risk via a portfolio of insurance products—but coordinating the purchase of multiple insurance products is often complicated by the inconsistency in coverage terms between different insurers. This is especially true of professional liability policies.
For real estate and property management clients, balancing the cost-saving benefits of higher insurance deductibles with lender requirements can be challenging. Strategies such as deductible buy down policies, indemnity agreements, and reimbursement policies help insureds reduce premiums while meeting lender expectations. Additionally, effective collateral management, including alternatives like letters of credit and third-party trust arrangements, is critical for clients navigating the increasing costs and evolving requirements of loss-sensitive insurance programs.
Catastrophe bonds issued over 2023 averaged a premium of 8.6%, the highest in ten years, according to data from global reinsurance consultancy Lane Financial. Coming on top of US cash rates of more than 5% made for a nearly 14% yield. That compares to issue yields in 2021 of barely 6%.
The California FAIR Plan provides essential property insurance for high-risk areas, offering basic coverage against perils like fire and wind when traditional insurance options are unavailable. However, this limited coverage does not usually meet lender requirements, as it excludes important protections like liability, theft, and water damage. To meet lender standards and achieve comprehensive protection, homeowners using the FAIR Plan often need to add a supplemental policy, such as a Difference in Conditions (DIC) policy, to fill these gaps.
Request a Risk Assessment today!
