Accreditation Organizations
Standards Developers/Managers

ACCREDITATION ORGANIZATIONS

A medical specialty certification board allowed a doctor to sit for a certification test, even though she did not meet basic requirements. Her tests were subsequently voided. She sued, asking the court to order the board to accept her scores and award $1,000,000 in damages. The board won after eight months of litigation, which cost substantial legal fees.

An immigrant doctor failed the same medical subspecialty examination three times in a five-year period. He sued the specialty certification board and several of its employees alleging he failed because they refused to alter the questions to accommodate his unfamiliarity with English. The successful defense cost $100,000.

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STANDARDS DEVELOPERS/MANAGERS

An association that promulgates rules and regulations for manufacturers of rubber products was sued as one of many defendants when a tire exploded as plaintiff was attempting to put a certain-sized tire on a rim/wheel that was just slightly smaller. Plaintiff alleged his permanent, disabling injuries were due to the association's failure to properly test the designs of the tire and rim, failure to warn of the danger, and failure to instruct on the safe use. Although no damages were paid, the successful defense was costly.

Plaintiffs, injured in a fire at their personal residence, sued, alleging certain construction material used in their home was unreasonably dangerous because it caused the fire to spread rapidly. They included a trade association, which tested and advocated the material, alleging the association had conspired for many years to hide the flammable characteristics of the material. Plaintiffs also claimed that burn tests the association sponsored were manipulated, that unfavorable results were concealed and that misleading information was provided to building code authorities and fire trade press. The insured association was successfully defended but it cost over $600,000.

A library sued a fireproofing company for the value of rare documents, which were destroyed in a fire at the library. The library later added a standards certification association as a defendant on the grounds that it had failed to instruct the fireproofing company on installation and testing procedures for the fire suppression system. The case was favorably resolved but defense costs were incurred prior to dismissal.

A data processing company suffered damage to its computer equipment when a pipe on the floor above the equipment apparently burst under pressure. The data processing company sued the contractor, which had installed the pipe, the manufacturer of the pipe, and a standards certification association, alleging the association had negligently formulated standards for bursting strength. Because the association's policy provided contingent property damage coverage, its carrier paid over $40,000 in defense fees, and finally had the suit dismissed prior to trial.

An association issues a press release about a lawsuit several members have filed against another party to address and resolve an industry-relevant issue. The defendant in that lawsuit files his own suit against the association, alleging he was defamed in the association's press release.

An association involved in testing products and publishing results of the tests was sued for allegedly dragging out the testing period on a particular product and delaying publication of the results of the testing. The plaintiff alleged this delay was a ploy by the association intended to allow third parties to continue selling the products and maximize profit.

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*These claims are examples of those encountered in the types of businesses insured under Media/Professional's Media Liability Plus Program.

Some are claims we've handled; in others, we were not directly involved. Coverage for these claims is not to be inferred from this list but must always be determined in reference to a particular insurance policy, which is the controlling document, as well as the facts and circumstances of each claim and applicable law.