Wednesday, August 27, 2014
Health insurance, worker’s
compensation, and commercial property insurance—these are some of
the most common types of insurance coverages that businesses should
have. However, what many fail to take into consideration is the
importance of product liability insurance. This also falls under
errors and omissions insurance, and for good reason, too.
Product Flaws
When one thinks of product
liabilities, manufacturing errors is often the first thought to cross
the mind. This problem is rampant ever since the beginning of the
Industrial Revolution, where every step of the manufacturing process
could be tainted with imperfections or mistakes. Though mass
production processes are much more refined today, flawed products
remain one of the most common sources of business lawsuits.
Design or Instruction
Defects
Sometimes though, the
manufacturing process isn’t to blame, but the very nature of the
product itself. Many customers often file class action suits claiming
that a product’s design is hazardous, ineffective, injurious or
even downright deadly (when it shouldn’t be). In some cases, the
manufacturer failed to give sufficient instructions as to the
product’s proper use.
Failure to Warn
Even with sufficient
instructions as to use, a manufacturer could nonetheless fail to
provide sufficient information as to the danger or hazards that a
product poses. This is especially true when it comes to chemical
cleaners, fertilizers, or other substances and products that can
potentially harm the user.
