A circuit board manufacturer ships boards that don’t work, due to a design defect. Now the customer wants to be reimbursed for expenses – plus lost income – and is on the verge of filing a lawsuit that could cost hundreds of thousands of dollars to defend.

Traditional general liability policies cover bodily injury or property damage from design defects. The Fireman’s Fund Manufacturer’s Reliability coverage pays for the customer’s lost revenues when products cannot be used due to the manufacturer’s defect or design error.