5 Tips To Reduce Product Liability Risks

tips reduce product liability risks lawsuit prevention

The highest source of lawsuits comes from product liability risks. The median range for settlement compensation amount for product liability was, on average, $1.5 million. The producer of the product is usually liable for any harm caused by their products. This is unless the purchaser used the product inappropriately and not according to its instructions. However, to protect yourself as a manufacturer, you can follow these steps to help avoid future liability claims. 

Quality Assurance And Product Testing 

If you want the highest quality product with fewer defects, then frequently test your production methods. Make sure that they reach a standard level of quality assurance before the goods are released to the general product. Your products should be maintained and compliant with federal regulations. This can be applied to any type of product, especially ones that are lab tested. This will help you discover any flaws before someone else does. 

Maintain Equipment 

One issue many manufacturers have is defective equipment. You have to constantly review, troubleshoot, and clean your equipment on a regular schedule. Doing this will help prevent you from running into problems later down the line. This can also help keep your employees safe, as malfunctioning equipment can put them at risk for injury. 

Double-Check Product Labels 

If you have a product that may be at risk for liability, include warning labels. The warning language needs to be very specific and detailed. This way, the consumer is educated on what the product risks may be and can understand they are making a decision to take a chance on purchase. The labels should be placed in multiple languages and with graphic images to help those who are visually impaired. 

Get Educated From A Product Liability Attorney 

When you work with a product liability attorney, they can help you understand what to expect when a customer files a lawsuit. They can also inform you of different types of liability insurance and how they can help protect you. Attorneys are knowledgeable and understand that you may be confused about the process. If there are pitfalls in your company policy, an attorney can help guide you on what sales practices, design methods, and other strategies you can do to reduce the risk of liability lawsuits. They can help you learn additional rules and verbiage on products that can provide additional protection against a lawsuit. 

Track All Shipments 

You can track your product shipments from the manufacturer to the warehouse distributors, and lastly to the retail locations. If you notice there is a bad batch or something went wrong, you can try and see if it is specific to a particular shipment or the location they were distributed to. You can quickly identify which products aren’t up to standards and prevent additional ones from being received by your customers. There is also the chance that shipments were tampered with or improperly shipped, which you can investigate before it harms customers. 

Find Out Additional Information On Reducing Product Liability Risks

Product liability settlements are costly and still remain one of the most high-profile lawsuits to date. Typically, as a manufacturer, you will be held liable. You can work with a dedicated attorney to help teach you how to prevent these litigation outcomes.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, & Blog Outreach Services