Product Liability for Business Owners
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As a business owner, it’s vital to understand product liability, as it could impact your company if any of your products cause harm to consumers. Product liability is the legal responsibility of a manufacturer, distributor, or retailer for any injuries or damages that may arise from a defective product. If your company is hit with a product liability claim, product liability lawyers can help.
Product liability refers to the legal responsibility that a manufacturer, distributor, or retailer bears when their product causes harm or injury to a consumer due to a defect. These defects can range from design flaws, manufacturing errors, or inadequate marketing, warnings, and instructions. In such cases, the affected party can file a lawsuit against the responsible entity for compensation related to medical bills, lost wages, or other damages. Product liability attorneys can represent your business if this happens to you.
Design defects occur when a product’s design is inherently dangerous, even when manufactured correctly. Examples of design defects include:
Manufacturing defects occur when a product deviates from its intended design during the manufacturing process, rendering it unsafe for use. These defects can be the result of human error, faulty machinery, or inadequate quality control measures. Examples of manufacturing defects include:
Marketing defects, also known as “failure to warn” or “inadequate instructions,” occur when a product is not properly labeled, lacks necessary safety warnings, or has insufficient instructions for safe use. Examples of marketing defects include:
To minimize the risk of all types of product liability claims, business owners should implement the following practices:
Manufacturers, distributors, and retailers are just a few of the parties that can be held accountable in a product liability claim. Any of these organizations could be held accountable for damages brought on by a defective product, depending on the specifics. For instance, a merchant might be held liable for selling a product with a known manufacturing issue, whereas a manufacturer could be held accountable for a design flaw.
A form of commercial insurance called product liability insurance shields businesses against the financial effects of product-related litigation. This insurance often pays for the price of defending against claims of product liability as well as settlements and awards. To safeguard their assets in the case of a lawsuit, companies that produce, distribute, or sell products must have sufficient product liability insurance.
Note that product liability insurance is not a substitute for product liability attorneys in the event of a claim. Contact product liability lawyers Craig Swapp & Associates for help with your product liability case.