Underwriters were supportive of the U.S. Supreme Court's recent decision that generic drug manufacturers are not liable for defectively designed drugs, and the ruling is not expected to impact price and availability of liability coverage, say insurance brokers.
According to a June 24 decision in Mutual Pharmaceutical Co. Inc. v Bartlett, generic drug manufactures are not liable for an individual's claim that a defective design in the drug harmed them. The court reasoned that because federal regulation bars the manufacturer from deviating from the brand-name product, they are not liable for adverse results.
The ruling follows the 2011 decision in Pliva v. Mensing that says generics are not responsible for failure to warn about a drug's dangers because they must use the same safety label as the brand-name version.
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