Are you covered? Check your product liability insurance coverage. Your product liability insurance should protect your business from claims related to the manufacture or sale of your product(s) to the public. It should cover your liability for losses or injuries caused through a defect or malfunction of the product to the buyer and /or user of your product. In some circumstances, loss or injury to the buyer or user through a defective design or a failure to warn the buyer or user. There are three basic types of products “claims” your company may face: Manufacturing or Production Flaws- This is a claim that some part of your production process created an unreasonably unsafe defect in our product. Design Defect- This is a claim that the design of your product is inherently unsafe. Defective Warnings or Instructions- The type of claim is that your product was not properly labeled or had insufficient warnings for the consumer to understand the risk. Damages awarded in these types of claims can include compensatory damages, economic damages, attorneys’ fees, medical costs, and punitive damages. Product liability claims can put your business out of business, so check your product liability insurance coverage and ask yourself, “Am I covered”.
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