Along with the normal challenges of business, firms in the manufacturing sector face legal liability risks that don’t affect other companies. For this reason, executives at many smart manufacturing companies in Southern California seek Anaheim product insurance to protect them from unique legal challenges. Here are three ways manufacturing companies face legal liability.
They make a product wrong. Many manufacturing firms produce many items throughout the year. With this volume, chances of a production problem increase. If one of your customers suffers bodily injury or property damage because of a defect in a product that your company manufactured, your company could be held legally responsible for both actual and punitive damages.
They make a product that has a bad design. Your company might never have a flaw in producing an item but still be held legally responsible for damages caused by bad designs. Unfortunately, sometimes a company doesn’t realize it has produced a product with a bad design until a significant number of the item has flooded the market. This can expose the company to tremendous liability.
They provide insufficient instructions or warnings. If injury occurs because a person does not receive adequate instructions for using a product or gets insufficient warnings about the hazards of the product, the company that made the item can be held legally responsible.
In three distinct ways, manufacturing companies face liability for the products they make. If your company is in the manufacturing sector, Anaheim product insurance can help mitigate these risks.