Do you manufacture consumer goods? Congratulations, you are at risk of facing a product liability lawsuit. Many manufacturers are unaware that they can be named in a lawsuit if a product causes injuries or damages—and the financial burden can sometimes be enough to put you out of business. Investing in product liability insurance for manufacturers can help lower your risk of paying for costly claims.
WHAT IS PRODUCT LIABILITY?Product liability insurance can help protect your business from certain claims due to products you manufacture, such as:
- Bodily injury or harm
- Illness or death
- Property damage
- Failure to provide warnings or instructions
- Mislabeling of products
- Perform Tests Running the right tests on your product helps you catch any defects it may have early on. If you see any potential problems during the testing, reevaluate how your product can function or be built so you can lower the risk of injuries and damage.
- Provide Warning Labels Providing adequate warnings helps a consumer know the limits of a product. For instance, if you know a product should not be used ingested because of choking hazards or potentially poisonous components, then you should clearly communicate it on a warning label.
- Improve Product Packaging After manufacturing a product, you need to prepare for it to be delivered into the hands of consumers. Is the product bulky or fragile? Does it need to be protected from UV rays? How does it look to consumers? Knowing where the product is going and who is receiving it will help you make important decisions that keep your product safe in transit.
- Trademark Your Product Protecting the intellectual property of your product can save you from legal battles in the future. Trademarks, patents, and copyrights can keep unique designs, functionality, and wording of your product out of the hands of competitors.
- Purchase Product Liability Insurance Once your product is in the hands of consumers, you can be held responsible for any injuries or damages caused by the product. Product liability insurance for manufacturers can help prevent legal costs from halting production or putting you out of business.