What does Manufacturers Penalty Insurance mean? Read on to discover the definition & meaning of the term Manufacturers Penalty Insurance - to help you better understand the language used in insurance policies.
Manufacturers Penalty Insurance
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.
We hope the you have a better understanding of the meaning of Manufacturers Penalty Insurance.