Products are manufactured all over the world. No matter the type of product – electronics or pharmaceuticals, consumer goods or components – the buying public count on them to be safe, of sufficient quality, with adequate instructions included. However, there are many various reasons why products don’t always meet those expectations or standards and can cause injury or loss. Some of those reasons are manufacturing defects, malfunction or incorrect operating instructions. When things do go wrong, the damages awarded in these cases can be extensive. They can include compensatory damages, medical costs, legal costs, economic and punitive damages. At worst, a product liability claim can put you out of business.
What many people fail to realize is that just because their company doesn’t manufacture a product they’re selling, doesn’t mean they don’t have liability for it. For example, many consumer products are manufactured and exported from China. However, because of the unlikelihood of successful recourse against the Chinese manufacturers, as a supplier of Chinese products and parts you need to have insurance to ensure that you are afforded protection for their negligence. Resellers can, and often are, included in any lawsuit brought by consumers for alleged negligence. And this doesn’t only apply to goods manufactured overseas. If a product that was manufactured in Canada or the US is re-labeled or rebranded by a distributor or retailer with their own name, that could heighten that distributor’s or retailer’s exposure – leading to a greater likelihood of them being named in a lawsuit. Axis Insurance will work with you to create the right products liability insurance as well as helping you transfer the risks to other parts of the supply chain.
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