Product Liability Insurance

If your organization manufactures or sells a product that is involved in causing an injury or property damage, your business can be held liable for damages. Product liability insurance covers your company in the event you face such allegations.

ELEMENTS OF A SUCCESSFUL PRODUCT LIABILITY PREVENTION PROGRAM

An effective program can help your organization reduce accidents, decrease the number of product recalls, and enhance your market position. Additionally, a comprehensive program can be utilized as a legal defense mechanism because it provides proof that your company takes safety and the risk of damage seriously.

Management Leadership & Communication: An organization’s commitment to product safety must come from your leadership and be effectively communicated to all employees.

Product Design: Product design needs to focus on safety in the foreseeable use, unforeseeable use, service, and maintenance of the product. You need to re-evaluate your designs based on technological advancements, recent court decisions, and public expectations.

Product Warnings & Instructions: Your organization should engineer out as many hazards as possible in your products. If potential risks exist, your organization should include detailed and visible warnings and instructions.

Quality Control: A thorough quality control program is important in detecting and preventing product safety hazards. Every stage of product design and creation should have a quality control process.

Sales & Marketing: Your sales and marketing team needs to understand product liability concerns when selling and marketing uses for the product. Your team can use this information to create a better market position and to set consumer usage expectations better.

Vendor Management: Vendor management should regularly evaluate the capabilities and reliability of suppliers. Make sure you have contracts with suppliers and that your suppliers carry insurance policies for their exposures.

Legal Team: Legal teams serve as advisors by helping organizations review marketing materials, enact document preservation policies, support in defense of product claims, and interpret laws and regulations as they apply to product safety.

Field Service: Field service staff often interact with your customers after purchase during install and repair services. Service personnel provide valuable insights because they hear about product issues, incidents, and complaints first-hand.

Post-Sale Management: Post-sale management strategies review the user experience, customer complaints, accidents, claims, service reports, and warranty data. Reviewing and making product changes from post-sale information improves the product and its safety.

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