3 Types of Product Defects

manufacturer liability insurance

Manufacturers can be held liable for defective or dangerous products causing injury or harm to people. According to the applicable law, liability is determined on either the basis of negligence, breach of warranty or strict liability. A single product liability lawsuit could mean bankruptcy for your business. Having appropriate manufacturer liability insurance can protect you should any of these product defects occur:

1. Design Defects

Design defects can be traced back to a poorly designed product. This means that all products are defective and unsafe. It is dangerous to use the product as intended or for another reasonably foreseeable purpose.

2. Manufacturing Defects

In this case the product was designed well. However, the otherwise safe product is rendered dangerous during the manufacturing process. The result is one defective product or multiple defective products that were manufactured at the same time.

3. Marketing Defects

Marketing defects are also considered warning defects. The product is labeled incorrectly or lacks safety warnings and sufficient instructions regarding proper usage of the product making it dangerous in a way not obvious to the consumer.

Lawsuits regarding product liability often times receive large jury awards. Protecting the well-being of your business is of utmost importance. Your best defense against lawsuits is proper manufacturer liability insurance that covers product-related defects.

Insurance Risk Advisors