A manufacturer of a lip balm distributed a product that was manufactured incorrectly. A claim for injury was made alleging that an unsafe ingredient was included which led to pain and suffering.

A research and development company produces samples which are sensitive to increases or decreases in temperature. The samples are stored in a single freezer at their premises. The company’s cleaning contractor unplugs the freezer to power a vacuum cleaner, then leaves without plugging the freezer back in. The samples thaw and are not recoverable. The property damage cover enables recreation of the samples, including the time spent in redoing the work, the business interruption (R&D Expenditure) covers the fixed costs and expenses of the downtime whilst the samples are recreated. In a non-specialist cover, this would be excluded under a spoilage exclusion.