meaning of business risk exclusion

business risk exclusion meaning in Law Dictionary

particular coverage which often omitted from product obligation insurance. Business threat occurs when a company manufactures or offers something that doesn't meet with the amount of performance the business claims. For example, if a company advertises a product as having a life span of 10 months but the product just lasts a few months, the insurance policy cannot protect the business.

business risk exclusion meaning in Business Dictionary

An insurance protection kind that is omitted from item responsibility insurance coverage which takes care of product manufacturing that does not achieve the overall performance degree guaranteed by the organization. An exception to business risk exclusion is a bench mistake which can be an error made during manufacturing process of a products. Organizations that may supply product problems as a result of bench errors may be entitled to coverage under product obligation insurance plans.