So how is it different if you manufacture goods compared to being a product seller?
If you are a distributor, retailer or wholesaler and play a role in marketing the product to consumers, you can be held liable in the event that your product causes injury. On the other hand, if you are a seller that purely just sells the product and one of your consumers has an injury due to your product you can pursue recovery costs from the manufacturer of that product to further cover you and your company.
What kind of claims could arise from the products that I sell?
1. A Defect in the Design of the Product
In this case, a defect stems from the design of the product since the design phase which was where the product was deemed to be unsafe. For example, if you own a hardware store and have a hammer on your shelf that the handle breaks off when used. You can argue that when the hammer was designed, the company you purchased the product from failed to ensure that the head of the hammer would remain intact on the handle which in turn created a dangerous flaw in the design.
2. A Flaw in the Manufacturing or Production of the Product
This occurs during the manufacturing process where a hazardous defect appears despite the safety of the design. For example, if you were to purchase a car and are in an accident where the airbags do not deploy that would not be a design defect. All vehicles are designed to have the airbags deployed in the event of an accident. During production of the vehicle, there was negligence when it came to installing the airbags correctly.
3. A Defect in Instructions or Warnings
In this instance, a person who was injured while using a product claims that the seller failed to provide the adequate instructions as to the proper use of the product or failed to post adequate warnings leading to an accident due to the risks of the product. For example, someone who buys a cleaning product had some splash on their hand and they didn’t rinse it off because they didn’t know the harmful effects. In turn, the manufacturer can be sued for failure to post warnings of the contents of the product.
Did you know you can also be sued even if negligence didn’t play a part? If an injured person can prove that the product was defective or caused injury you could have a product liability suit on your hands. Product liability coverage depends on your business and what types of products that are produced or sold. Having the proper product liability coverage can ensure that you and your business are covered in the event that a product is defective or causes harm. Talk with your MIG broker today to get more information to cover your business!