How Do You Avoid Product Liability?
If you are a business that manufactures or supplies products or certain components of products, you are bound by the law to ensure the safety of the clients who use them. The United States has an organization by the name of FTC or Federal Trade Commission to protect consumers from any fault, damage, or injury that may occur as a result of using the product or product component. There are many other laws that are enforced to protect the general public from faulty products and product components on the market. This article provides information on how do you avoid product liability claims and have insurance for your new product.
Product liability refers to defective products that result due to various design defects, manufacturer defects, or marketing defects. The failure to provide adequate warning against the risk is also considered a defect. Although it is not a physical defect, it can also result in a product liability claim. Product liability claims fall into millions of dollars in damages. The cost of such injuries is estimated at $12 billion annually. In fact, a product liability claim can cripple your business, especially if you operate a small business. Here are important things to consider in order to avoid product liability issues.
Thorough product testing is essential to avoid such claims over time. This will alert the manufacturer of possible defects in their products or product components. You should be able to prove that you have taken reasonable steps to avoid product defects. Providing appropriate warnings dangerous goods in another important step that you can take in this regard. Taking out a product liability insurance is another step to avoid liability issues in the long run. These are important steps that you need to take.