Claims and loss examples

Product liability exposures know no boundaries. As more Chinese consumer goods are put on the U.S. and European store shelves, Chinese suppliers are more exposed to product liability claims than ever before.

US Claims Samples

Fifty million dollar lawsuit
A two-year-old boy fatally choked on a lichee gel candy. He went into a coma and died nine days later. The parents filed a lawsuit in San Mateo County, California, where the distributor was based; they also sued the manufacturer, a Taiwan-based company. The case was awarded $50,002,538 USD.

Two million dollar verdict
A 50-year-old nurse's aide sustained a third- and fourth-degree burn, when she dropped a lit cigarette on herself. Her pajamas ignited and flames burned more than half of her body. The light weight fabric of the pajamas was allegedly to be at fault, leading to a $2,000,000 USD verdict.

Three million dollar settlement
Christmas tree lights allegedly started a fire, causing the death of a young child and burns to the teenage mother.  There does not appear to be any evidence that the lights started the fire in the mobile home.
 
The case settled for US$3,000,000, between two companies that provided insurance to this Asian supplier.

1.6 million dollar defence
The alleged extension cord was purchased at a well-known U.S. mega store and caused a fire in a mobile home resulting in fatal injuries to two children, ages 2 and 4, and serious burns to their 23 year-old father. The wife was also allegidly injured but no specifics were given.

There was no evidence to suggest that it was the extension cord that caused this fire.
 
The total cost of defending this claim reached US$1,600,000.

For more about product liability contact AIG.