Manufacturing Defect and Subrogation

Manufacturing Defect and Subrogation

In this day of low-cost production and price competition the problem with poor quality manufacturing is a major problem for insurers. All too often short-cuts taken by a jewelry manufacturer can cause the loss of a large major diamond or gemstone, resulting in an insurance claim regarding a peril not covered by the policy. The ability to establish prima facie evidence of manufacturing defect and link that defect to the cause of the loss is vital to protecting the interest of the insurer and insured. Inflated indemnity payouts due to manufacturing defects create higher costs for everyone and must be addressed as part of an insurance adjuster’s evaluation.

At GCA we are uniquely qualified to inspect, identify, quantify, and document manufacturing defects that cause losses. We will work with the insurer to subrogate these losses if required, and ensure that the cost of manufacturing defects are made the responsibility of the manufacturer and not the insurer or insured.

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