What is the Impaired Property Endorsement?
Answer The Impaired Property Endorsement extends Coverage B to include impaired property. Impaired property means tangible property, other than the insured’s product, that cannot be used or is less useful because it incorporates the insured’s product that is known or thought to be defective, deficient, or inadequate if such property can be restored to use by the repair, replacement, adjustment or removal or the insured’s product. Impaired Property is a major exposure of any component or ingredient manufacturer. The resulting damages are similar to product recall claims. The major difference is that while impaired property is less useful, it does not necessarily cause bodily injury or property damage or pose an imminent danger of bodily injury or property damage. The Impaired Property Endorsement was developed to meet the needs of component manufacturers that needed broader coverage than provided by the product recall trigger of bodily injury or property damage.
Related Questions
- Determine which, if any, additional endorsements you want/need: For example, do you want or need the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement?
- If I have an inland marine endorsement for personal property, do I report the exposure under homeowners or inland marine line of business?
- What is the Impaired Property Endorsement?
