It is essential to safeguard your business against product liability claims and know what to do on such an occasion. If your business manufactures products and sells them to the public, you already know many liabilities associated with your work. Customers can sustain injuries, products may malfunction, and defects can cause significant issues. Minimizing these liabilities is essential, and investing inbusiness insuranceis one of the most remarkable ways to do so. In addition to a general liability insurance policy, you must develop a strategy to prevent product liability claims.
Safeguard Your Business Against Liability
Consider the following product liability defenses to protect your company against common risks associated with product development.
Choose the Right Business Insurance Policy
Securing an insurance policy that covers general liability is the first step toward mitigating the risk of product liability claims. Unfortunately, liability is often unpredictable and can emerge despite extensive prevention efforts. General liability insurance protects your company from the losses that could stem from this risk. It is crucial for manufacturers that make products that could negatively impact consumers’ health — products such as medication or household chemical treatments. Be sure to choose a business insurance policy that covers the outstanding liabilities that your company’s products may incur.
Identify Potential Liabilities Proactively
Insurance is undoubtedly essential, but ideally, your company can minimize therisk of product liability claims before they escalate to the point of a claim. To do this, you must strategize ways to identify product liabilities and nip them in the bud.
- Closely monitor who can access your product
- Include warnings about any potential risks
- Research potential risks thoroughly before product release
- Seek feedback from customers regarding safety
These steps can ensure that your company remains aware of any potential hazard a product may cause. If you receive notification of a previously unknown liability, you should respond by investigating further and assessing the severity of the risk.
If your investigation reveals that a product is hazardous to consumers, handling the liability carefully is essential. It is prudent to recall the product in most cases and issue a notice to consumers regarding the recall. Although this process can be costly, it’s likely less expensive than lawsuits that could emerge if your company fails to take action.
Partner With Your Business Insurance Provider
Finally, you should also find a way to partner with your business insurance provider and develop new risk mitigation strategies. Your insurer can be an incredible resource for providing tips and guidance that will help you massively reduce your company’s overall risk. Remember that your insurer has likely seen countless product liability claims, and this experience gives them the knowledge you need to identify product problems before they emerge. Ultimately, doing these things will help you safeguard your business against most threats.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
