Automotive
In the automotive industry liability does not end at the factory gate: it travels with the part to the line where it is fitted and to the vehicle already on the road. Few covers are as specific as those that follow that journey, and few are underwritten with such rigour. We know what the insurance market asks of an automotive supplier, from customer-owned tooling to component recall, and we design with you a programme conceived for each stage of that journey.
The covers that support a company in this sector
Each one is designed based on the company's real exposure. None are contracted the same in two companies in the same sector.
Lo que nos preguntan en automotive
Our client is claiming for the hours of line stoppage. Is it covered?
Only if the policy includes the guarantee for financial losses derived from defective products. General liability covers material and personal damages, and a line stoppage without prior physical damage is a purely economic loss that is excluded by default. When the guarantee exists, it comes with its own sub-limit, and it is advisable to compare it with the penalties in the supply contract.
What exactly does product liability cover in a Tier supplier?
It covers the damage that the part causes to people or to goods other than itself. When the affected party is a consumer, that damage is governed by Book III of Royal Legislative Decree 1/2007, with the legal excess of 390.66 euros for material damages. The claim from the manufacturer whose production has been damaged is a business-to-business relationship and is resolved by articles 1101 and 1902 of the Civil Code, which is the route through which it usually reaches a Tier supplier. Book III excludes damage to the product itself, so neither its value nor its replacement is compensated through that route; in the contractual claim of article 1101, they are indeed discussed. What no liability policy covers is the value of the part itself, and for the rest, there are extended product clauses —dismantling and assembly, joining and mixing, withdrawal expenses— each with its own sub-limit.
Our client's tooling has been destroyed. Who replaces it and in how much time?
Loaned moulds and tooling are third-party goods on deposit and are covered by the policy of whoever is safeguarding them, provided they are declared at their replacement value, which does not match the accounting value. The tooling contract usually also specifies who is responsible for replacing them, and it is advisable to read it alongside the terms and conditions. That manufacturing period marks the actual indemnity period, as supply does not resume before then.
