Home > Glossary

Manufacturers Penalty Insurance

Manufacturers Penalty Insurance

Definition

Coverage in the event of late delivery of a product for an agreed amount based on the contract between the insured manufacturer and a purchaser. Designed for manufacturers that are compelled to enter into contracts under which they assume responsibility for delay in completion of a product. The policy generally covers 90 percent of the penalty loss sustained but does not extend to strikes or labor disputes.

Related Products

Navigation

Social Media

User ID: Subscriber Status:Free