The Basics of Product Design Liability Claims

Posted on: June 17, 2016 by Huntersure

Products liability covers a broad range of commodities and consumer goods. Put simply, any product that is man-made is susceptible to product liability claims. Due to this sobering fact, it’s imperative that your clients carry the proper Product Design Liability Insurance to protect the design, manufacturing and distribution of their products.

Product liability is a general term that refers to the designer, manufacturer, or seller being held responsible for placing a defective product into the hands of the consumer, as defined by Find Law. Here is a breakdown of the three categories in which all product liability cases are comprised of:

Strict Liability- These vary from state to state, but in its simplest form: if your product is deemed defective or causes injury, you are liable for paying for damages. Although what actually constitutes a defective product can range drastically, SGR Law states a product is typically considered faulty they “fail to meet the consumer’s reasonable expectation” or the “risk in use of the product outweighs the product’s value to society.”

Negligence- Contrary to strict liability, this aspect focuses on the behavior of the accused company. In order for a products design company to be successfully sued by a claimant, they must prove that the company had a legitimate duty to uphold, failed to comply, and in turn, caused injury or damage to the plaintiff.

Breach of Warranty- This component is conceptually different than the first two. This type of claim can only be filed by the direct purchaser of the product and involves the particular attributes or results that the product offered being challenged i.e. size, weight, speed, endurance, etc.

Huntersure offers competitive professional liability coverage to protect the numerous risks associated with designing, manufacturing, and distributing products. We have developed close relationships with brokers to provide superior service that exceeds client expectations. For more information, contact us today at (855) 585-6255.

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