H3FH-17-C flender international Helical speed reduction gearboxes H3

Flender/Flender Gear Units/Helical speed reduction gearboxes H3

erage, less than 1 percent of firm' revenues. 4 Product liability insurance premiums in Europe and Japan are significantly lower, partly because companies' coverage is lower and partly because their risk of litigation is less. Insurance premiums for exports to the United States can be much higher than those in the country of manufacture. According to the trade association representing leading European gear industries, product liability premiums for European vendors selling in the United States and Canada averaged about 5 percent of the revenues from these sales in 1, up from 1.4 percent in 1, and were expected to continue to rise:* Recently, one British gear manufacturer increased its product liability insurance coverage by 1 percent to cover liability for products sold in the United States. 4 In another instance, .. manufacturer stated that .. insurance companies' premiums were unrealistically high because the faultless record of the firm' products was not considered when premiums were quoted. The manufacturer ultimately chose foreign insurance vendor that offered lower premium based on the past performance of the product." The effects of product liability legislation and litigation have also been felt in the gear industry' end markets. For example, the general aviation sector, which produces aircraft with less than twenty seats, experienced nearly ten-fold growth in liability premium costs between 1 and 1, from 4 AGMA, posthearing submission, . 1. 4 Eurotrans, minutes from the meeting of Economic Commission, March 3, 1. " USITC staff interviews with gear industry officials, United Kingdom, November 1. 4 USITC staff interview with .. gear industry official, August 1. $2 million to over $2 million annually for the industry. 4 According to study conducted by the General Aviation Manufacturers Association, the average cost for product liability insurance for these aircraft was more than $1,0 per unit in the mid-1s