Managing Product Liability Risk

Posted by Kayla Eggert on Mar 16, 2022 8:30:00 AM

Defective products can cause serious injuries and property damage. Some product liability lawsuits settle for billions of dollars. No company ever intends to design a defective product that could hurt someone. However, any organization that designs, manufactures, distributes, or markets products must still take this risk seriously.product liability-1

Types of Product Defects

There are three main types of product defects:

  • Design: Involves a problem with the actual design of the product.
  • Manufacturing: Happens when a manufacturer doesn’t follow the product’s design plan.
  • Marketing: Occurs when a product doesn’t have proper warnings or labels or has insufficient instructions.

Best Practices for Minimizing Product Liability Risk

  • Control or eliminate hazards and risks in the product design phase.
  • Ensure all manufacturing equipment meets quality assurance standards.
  • Test products in house.
  • Ensure all products comply with industry and government safety standards.
  • Confirm all labels, warnings, and instructions adhere to required standards.
  • Hold regularly-scheduled safety reviews.
  • Understand your exposure if you import foreign products or materials.
  • Enable and review customer feedback.
  • Keep all essential records.

Our safety summary on product liability contains more in-depth information on the types of defects and best practices as well as record-keeping tips and what to do if your organization suspects one of your products is defective. Check it out!

Topics: Safety

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