The Importance of Product Liability Insurance for Manufacturers

Defective products result in thousands of injuries on an annual basis. From recalled vehicles due to defective airbags, to recall pieces of furniture due to toppling risks, too many products that contain hazardous defects are sold to the public. Those injured by a defective product of any type can file a claim for damages against the manufacturer. It is important to obtain proper New Jersey Manufacturers Insurance and understand how this product liability claim can be approached.

Understanding Manufacturing Product Defects

Manufacturing defects are the most common cause of product liability claims. A lawsuit based on a manufacturing defect alleges that the original design of the product is completely safe, but that something happened during the manufacturing process to make the product unsafe. A manufacturing defect exists if the product does not conform to its intended design and fails to perform safely as the intended design would have performed. 

According to products liability law, unreasonably dangerous products fail to perform as safely as an ordinary consumer should expect for intended use, or in a manner reasonably foreseeable by the manufacturer, or the risk of harm in the design outweighs the benefits. For instance, consider this scenario: A set of tires is designed to support the weight of a vehicle, resist punctures, and hold up against wear and tear – by accepted standards, the tires are safe for use. However, during the manufacture of these well-designed tires, sawdust gets into the adhesive glue that is used to secure the tire together, resulting in a high risk of tire tread separation, tire blowout, and a serious accident.

Understanding a Claim 

Injury-causing products are a serious product liability claim. A defectively manufactured product is flawed because of some error in making it, such as a problem at the factory where it was fabricated. As a result, the injury-causing product is somehow different from all the other ones in stock.

Other examples of a manufacturing defect include:

  • A swing set with a cracked chain
  • A tainted batch of cough syrup containing a poisonous substance, or
  • A moped missing its brake pads.

In each case, the injury must have been caused by a manufacturing defect. So, if one injures themselves while riding on the moped with the missing brake pads they would have a manufacturing defect claim if they could prove that the missing brake pads—not poor steering—caused the accident.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we strive to protect the investments of business owners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.