Don’t Fear Product Liability! Check Out How You Can Reduce Your Risk

Reduce Your Risk For Product Liability

Find out how to reduce your risk for product liability.

Liability comes with the territory of running a business. With employees, products, services, and customers, liability suits are just waiting to happen. While it’s impossible to entirely prevent liability issues, you can take action to reduce your risk. Check out how to lower your risk for product liability with these tips.

Hold the Supplier Liable.

Transfer some of the responsibility over to the supplier. As you settle into your relationships with your supplier, draft a written agreement outlining where product liability lies. Documents like a hold harmless agreement and statements of financial responsibility can help to minimize your product liability risk. Keep in mind that these agreements should be established at the beginning of your business relationship.

Pay Extra Attention During Product Design.

Fixing a faulty product is a problem best solved during the design phase. If it’s not right then, it certainly won’t be right later. Implement policy and procedure to take extra time to evaluate product designs. Double check that they meet all industry and government safety standards.

Use Customer Feedback to Your Advantage.

Once your product is released, pay attention to customer feedback. Their feedback could give you the necessary insight to improve the product and take care of any issues before they get out of hand.

Keep Detailed Records.

From approved designs to thorough instructions, keep necessary documents associated with the development and manufacturing process. They serve as proof that you meet the necessary regulatory requirements.

Implement measures to reduce your risk for product liability, and invest in commercial liability insurance. Contact the professionals at Brown & Brown Insurance to help find the best policies for your business. Located in Anaheim, California, we serve all your personal and commercial insurance needs.