Manufacturers Need Insurance for Product Liability

Needham Insurance Agent

Manufacturing companies create products for many different industries, both locally and across the US. Retailers and wholesale companies rely on you to provide them with items that have been properly tested and deemed safe for public use. Items that lead to injuries or create hazards can cause great concern in this litigious society in which we live. The fact is, companies cannot escape being sued for producing faulty products. A business is always vulnerable to the possibility of a lawsuit.

Its important to know just what you could be found liable for and what product design standards need to be met. How rigorously do you test your products before making them available to wholesalers? What are the risks, if any, involved in packaging and what is the effect of product service on liability? Defenses available in a liability suit include any knowledge that confirms the safety of any product produced and product liability coverage from a Needham Insurance Agent.

Defect issues can often plague a manufacturer

Products may be deemed unsafe for any number of reasons. It could be due to a lack of proper testing, or it could simply have defects that prevent it from performing its necessary functions. For most companies there are ways to reduce the likelihood of facing a product liability lawsuit, along with the odds of losing one.

Your company cant be held liable unless there’s a defect in your product, therefore you must strive to reach the goal of no defective parts, as this is the key to steering clear of ruinous claims. You should have a department whose job it is to target and eliminate those defects that can cause injuries.

Defendants in litigation are often caught by surprise by the product characteristics courts identify as defects. They will be held responsible even if those defects show up somewhere else in the distribution chain.

A good gauge to use in your quest to eliminate or limit any risk is to examine the design of your products and surmise what could possibly go wrong when someone attempts to use it. This can go a long way towards helping you to understand how, perhaps, your product should have been designed.

Zero defects, is probably an unachievable goal, although that’s how high you should aim. In the meantime, secure your organization with product liability coverage from a Needham Insurance Agent so that you have the capability to defend a claim.