Injuries are not
only sustained in common accidents such as car crashes and slip and fall
mishaps inside someone else’s property. Injuries and other damages may also be
incurred when using a defective product. When this happen, injured individuals
may file product liability claims to potential liable parties. As it is,
product liability refers to the responsibility of a certain entity in-charge of
the production of certain goods for any harm a defective product caused. A
claim usually arises when a product, which should always meet the consumer’s
expectations, has an unforeseen defect or danger.
According to small
business insurance experts, the entities that are part of the chain of
distribution of the defective product, from the manufacturer, retailer,
supplier, to the wholesaler or distributor, may be held liable for the injuries
and other damages incurred by an injured victim. However, determining who the
responsible parties in the claim are can be complex, which is why it is
imperative for the victim to hire a lawyer.
Product
liability claims involve a wide range of products, from motor vehicles such as
cars, medical devices, pharmaceutical drugs, products for infants and children,
and handheld equipment, to name a few. However, claims of injury and damages
caused by defective products can be categorized into three types. These are the
following:
·
Manufacturing
defect claim. This stems from a mistake made during the manufacturing phase of the
product. The product failed certain standards of safety, but was included in
the distribution anyway along with the other similar ones that were not
defective, thus increasing the likelihood of an injury to the consumer.
·
Design
defect claim. This stems from a product that is unreasonably dangerous despite
the fact that it was manufactured according to the right specifications. There
are instances in which the design of a certain product may have subtle flaws
that may increase the consumer’s likelihood of getting injured.
·
Failure-
to-warn claim. This stems from a product that lacked warnings or instructions
for its proper usage. Such a claim usually involves a product which is not
known to be obviously dangerous to the consumer, or requires the consumer to
exercise due diligence when using it.
Consulting a
legal professional is imperative in helping determine what type of product
liability claim the victim has. The legal counsel can also help pursue the
interest of the injured individual, preserving valuable pieces of evidence to
further establish proof of negligence on the any of those involved in the chain
of distribution of the defective product. Basically, the claim must show that
the product was defective, was using it as it was intended, and the defect
resulted in the person’s injuries and incurred losses.
If your business does
not have small business insurance, you may want to strongly consider getting
one because once a consumer files a claim against you; it would become an easy
income pitfall. Product liability claims are typically expensive, which is why
you would want your business and investments be protected by insurance. There
are many stories of businesses that failed due to inability to provide for
legal fees and compensations for the consumers, which led them to bankruptcy.
This is why it is extremely important to have insurance by your side to ensure
that your business will be protected. There are many insurance companies in
Australia that offer topnotch and extensive insurance policies for businesses
that are in the products manufacturing, distribution, and retail industry.
Hence, you should not have a hard time finding one with the best policies and
terms for your business. Don’t make the mistake of ignoring the fact that
product liability claims may put an end to your business.
No comments:
Post a Comment