May 22 2009
Are Manufacturers The Only Ones Who Face Product Liability?
Many retailers, warehouses, distributors, and middle-men incorrectly assume that they would not be held responsible for injury or damage related to a defective product. Does the business have or need a products liability insurance policy? There is some logic to this thinking… after all, they didn’t create the product, so why should they be held responsible for the defects?
In reality, though, the liability for defective products and the damage they cause can be legally carried through the entire path of distribution of a product.
Obviously, this starts with the manufacturer of a product. Manufacturers have a responsibility to create products that are reasonably fit and safe for their intended use, and to warn against improper uses that might be reasonably expected.
Distributors are especially vulnerable when the manufacturer is foreign and not subject to laws of the United States. Distributors are the next responsible party to ensure that the products they distribute are safe; and courts will typically view an injured party as less able to protect themselves than a distributor.
Other companies or parties in the chain of distribution might be reconditioners, lessors of products, middle-men, and retailers. A business should always consider getting liability insurance to be convered if something happens.
Comments Off
