A small product company receives a demand letter. Somewhere in a warehouse there is a policy binder, purchased two years earlier, filed and forgotten. The founder’s first assumption is that the policy handles it. Steven Capuano’s observation, after years around product development and the paperwork that surrounds it, is that the policy is only one of four documents in play, and it is rarely the one that decides the outcome.
Product liability is not a single protection. It is a chain of documents that either connects or does not. The policy, the certificate of insurance, the indemnification language in the supply agreement, and the contract with whoever sells the product all reference one another. When they line up, the risk lands where the parties intended. When one link points somewhere unexpected, the founder’s company absorbs the entire exposure,
