If you are in the business of Life Sciences, it’s important to understand how a hold harmless agreement may effect your company. This type of agreement is often written into contracts and its purpose is to relieve a party of liability. If you are not familiar with hold harmless agreements, it’s important to seek legal advice so that you can understand how they may impact your business. If you do not take the time to educate yourself about hold harmless agreements, you could be putting your business at risk.
Here is an example of how a hold harmless agreement would work: Let’s imagine you manufacture a medical device. You rely on certain parts to be contract manufactured. There could be a clause in your contract, with the company that manufactures the component parts for your device, that states they will not be held liable for any injuries or damages caused by the product, then you as the manufacturer of the finished product would be held solely responsible in the event that the product causes injury to a consumer/patient. It is true Life Sciences products, like any other product, that if a claim were to arise, there is the possibility that others may seek damages by way of a class action. This in-turn could have catastrophic financial implications to a business. Particularly if no percentage of claims can be subrogated towards contracted manufactures of your product. Of course, hold harmless agreements can offer contractual protection for your business also.
For example, if you are selling a medical device, you may want to include a hold harmless agreement in your contract with distributors. This could protect you if the device is defective and causes injury to a patient. It is important to work with both an experienced product liability insurer and to seek expert legal counsel to protect your business interests and to understand all aspects of a contract, particularly when it comes to hold harmless agreements. Make sure you understand all aspects of any contract you sign, and if you have any questions, seek legal counsel to advise you. In the end, it’s better to be safe than sorry when it comes to protecting your business. When it comes to product liability, there is no one size fits all insurance policy. You need a policy that is specifically tailored to your business and products.
There are different types of product liability insurance policies, but most will cover claims for damages caused by a defective product. Some policies can also be extended to cover product efficacy and product recall expenses. At All Med Pro we have the experience and expertise to work with you to create a policy that meets your needs and gives you the peace of mind knowing you are protected.
If you have questions about product liability or contracts, please reach out us. We are more than willing here to help. You can reach me at [email protected] or give me a call on 020 757 6950.