Efficacy insurance

{
  "id": "MLC-T-INS-001262",
  "term": "Efficacy insurance",
  "field": "Insurance and risk management",
  "definition": "Coverage for financial losses arising from a product or service failing to perform its intended function, even if it does not cause physical damage or injury. This type of policy is particularly relevant for manufacturers of components or software developers whose offerings might not meet performance specifications. It addresses the economic consequences of non-performance rather than direct property damage or bodily harm.",
  "url": "https://mlchart.com/terminology/insurance/efficacy-insurance/"
}