Sistership Exclusion
Definition of "Sistership exclusion"
Part of the business risk exclusion in general liability insurance that denies coverage for subsequent claims if a defective product is not recalled by an insured. For example, if a consumer filed a damage suit against XYZ Co. claiming that he or she became sick while eating a can of soup from a particular lot that was contaminated, the insurer would not pay later claims filed by other consumers if the XYZ Co. did not recall that lot of the soup. The general liability insurance policy for businesses also excludes costs associated with the withdrawal of a product from the market whether it is ordered by a government agency or by company management. A business that wants coverage for product recall would need to buy product recall insurance to include the extra wages and other costs of identifying the faulty product, notifying consumers, correcting or repairing the product, and redistributing it.
Popular Insurance Terms
Bodily or emotional injury resulting from physical or mental wound or shock. A traumatic injury is caused by something outside the person's body as opposed to a sickness or a disease. An ...
Special endorsement to personal automobile policy (pap) covering loss of records, tapes, and other sound equipment caused by an insured peril in an insured automobile. ...
Provision in workers compensation insurance under which an employee who incurs an injury in another state, and elects to come under the law of his home state, will retain coverage under the ...
Employer, association, labor union, or other group ...
Coverage for personal effects of a tourist, including apparel, books, toilet articles, watches, jewelry, luggage, portable typewriters, photographs and photography equipment and supplies. ...
Vesting, deferred or vesting, immediate under which the accrued benefits of the employee increase on a percentage basis (according to years of service and/or attained age) until 100% ...
Rule that provides four requirements for monitoring the independent agent distribution system: The insurance company must be involved in the training of the independent agent. The ...
Portion of a federal law that imposes a penalty excise tax on an excess benefit transaction of 25% of the excess benefit on the person from inside the organization (disqualified person) ...
Largest property and casualty insurance company trade association in the world (international membership)whose objectives include the service of its membership through positive legislation ...
Have a question or comment?
We're here to help.