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MajorMedDev, a major medical device company, had sold its long-established wheelchair manufacturing business to a medical supply company. An indemnification agreement established that MajorMedDev would share some responsibility for personal injury claims related to design and manufacturing defects that predated the business sale. They would also replace parts, seeking reimbursement from the new owner.

But managing the transferred risk proved to be a headache; the liability was larger than expected. With a constant onslaught of relatively small claims that could continue for up to 20 years from the sale of each wheelchair, MajorMedDev turned to KCIC for a solution.

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