SMT Increases Liability Insurance to $15 Million

On December 31st, 2011 President Obama signed the National Defense Authorization Act (NDAA 2012) into law for fiscal year 2012. Section 818, among other things, specifies Contractor responsibility and possible penalties for ANY counterfeit parts furnished to the DoD.

As a responsible Independent Distributor to the Defense & Aerospace industry SMT Corp is tasked with effectively mitigating the risk of counterfeit parts BEFORE they are supplied to our customers. As such, SMT Corp feels strongly it should be incumbent on all open-market suppliers to demonstrate significant responsibility - “skin in the game” - when it comes to protecting their customers financial interests from any possible downstream liabilities arising from the components it supplies to them.

Although SMT Corp has never had a single insurance claim since we began in 1996, we have decided to proactively increase our products liability insurance from $10 million to $15 million – in line with the possible $15 million penalty outlined in section 818 of the NDAA 2012 legislation facing defense contractors today.

With SMT Corp's “best-in-class” authentication and quality-assurance processes already in place on the front-end, this very proactive (and costly) investment is a testament to SMT Corp's deep responsibility to protect our customers on the back-end if ever needed as well.