Products Liability and Risk Control

Depending upon how many products you have you might choose to avoid some of the more hazardous products in your portfolio. Whether or not you have a choice in eliminating some of your products due to high hazard exposure, there are specific lost control measures that you can use in reducing your product liability exposure.

1. How your product is designed, engineered, and it’s intended use can help for use along with very descriptive pictures of each and every process can help reduce and or eliminate injuries.

2. The manufacturing and assembly of your product can vary tremendously with regards to quality depending upon the controls that you put in place. If you are always looking for the cheapest manufacturer or the cheapest assembler of your products you normally will get poor quality products in the end result. More often than not this leads to more product liability exposure claims.

3. How you advertise and promote your product and the warranties or lack thereof will also have an impact on your product liability claims. False advertising or misleading advertising can lead to product liability claims even if somebody is not injured or property is not damaged.

4. Packaging and labeling is a nether loss control step that you can use to possibly reduce and were eliminate product liability claims. If your product is not arrive in a safe and usable manner besides having unhappy clients you might be setting yourself up for product liability damages from unsafe packaging of your products.

5. Instruction manuals in multiple languages depending on the end-users are a must in this day and age. Having accurate and up-to-date online manuals for all users is another key to product liability safety.

6. Whether you provide this service and parts in house or you outsource it you must have good quality standards and communication in this process. Otherwise a completely valid and quality product can become prone to injury with improper service or improper parts.

7. Production inventory and recordkeeping must be maintained with unique coding to identify when and where each product was manufactured.

8. Product recall and product returns need to be very transparent and easy for the consumer or they will lead into product liability claims quite quickly.

9. Audits whether internal or external of the entire manufacturing assembly distribution service and follow up processes can identify in advance potential liability claims.

10. Subscribing to Sigma six or ISO 9000 type quality programs can help assure that you have the best quality products out in the marketplace. Obviously there is a cost trade-off with higher quality products and the price it will take to keep a high quality product in the marketplace.

While all of these 10 steps are more costly than not doing them at all it would be prudent to do a cost-benefit analysis of doing them versus the potential for multiple product liability lawsuits and the damages that will ensue from not doing them.

The implementation of these 10 basic loss control measures for product liability exposures can keep you ahead of the pack in a very competitive marketplace. There is a lot more certainty in a business that practices product liability risk control measures versus those that take chances.

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