At 9:07 a.m., a sensor fault stops a robotic cell. The maintenance team responds quickly, but the replacement component is proprietary and the vendor is several states away. By noon, upstream material has begun to accumulate. By the end of the shift, downstream production has stalled. The failed part may be small; the interruption is not.

celebrates the ingenuity that keeps American manufacturing moving鈥攁nd the people, technology and planning behind that progress. As operations become more automated and interconnected, resilience increasingly depends on understanding how those connections work together, especially when something unexpected interrupts them.

In connected manufacturing, a breakdown rarely stays where it begins. As production becomes more automated, the impact of a failure is shaped not only by what stopped, but by every process, person and customer commitment that depended on it. Reliability is no longer simply a measure of equipment performance. It is a measure of how well the entire operation can withstand, and recover from, disruption.

Reliability Is About the Whole System

Investment in robotics continues to reshape the American factory floor. The now investment across manufacturing establishments, reflecting how integral automated equipment has become to modern production. Each installation can improve throughput, precision and consistency. Across an increasingly connected plant, however, it can also create new dependencies that extend far beyond a single machine.

A disruption involving automated equipment may begin with a mechanical component, electrical system, controller, sensor, network connection or integration point. Its impact can move rapidly across connected processes. As federal guidance on operational technology explains, industrial environments increasingly depend on . A machine may be physically sound while a control issue renders it unavailable. One cell may operate as designed while a downstream dependency brings the line to a halt.

That is why a traditional asset list tells only part of the story. Federal guidance recommends developing . Two machines with similar replacement values may have very different operational importance. One may have a manual workaround and interchangeable parts. The other may be a single point of failure with specialized programming, long-lead components and no spare capacity.

鈥淎 critical asset is not always the most expensive machine on the floor. It may be the component, control or connection that gives the rest of the operation permission to move,鈥� said Jacki Surguine, Healthcare & Manufacturing Market Segment Strategy Director at 糖心传媒. 鈥淯nderstanding those dependencies is where meaningful continuity planning begins.鈥�

Map the Cost of Time

When critical equipment stops, the cost of interruption can grow by the hour. Production loss is only the first layer. Overtime, expedited freight, spoilage, missed customer commitments, contractual obligations and strain on alternate facilities can deepen the impact. Recovery may depend on a vendor鈥檚 availability, a programmer鈥檚 expertise or a component that is no longer stocked.

Manufacturers can make that exposure visible by tracing the flow of production around critical equipment. FEMA鈥檚 recommends using a business-impact analysis to identify the operational and financial effects of a disruption.

Which processes stop immediately? Where can work in process be held safely? What can be rerouted? Which customers, suppliers or locations feel the disruption next? At what point does lost production become difficult to recover within the existing schedule?

Questions like these transform continuity planning from a document into an operational strategy. They can also help manufacturers develop .

Predictive maintenance can help detect changes in vibration, heat, pressure or performance before failure. Yet data alone does not create resilience. Its value depends on whether an alert leads to a clear and timely decision. Alert thresholds, ownership and escalation should be defined before a warning appears. Teams need to know who evaluates the condition, what triggers a shutdown and how immediate production demands will be balanced against equipment risk.

Build an Actionable Recovery Plan

The strongest recovery plans connect technical preparation with clear decision-making. Manufacturers can begin by taking several practical steps:

• IDENTIFY equipment and control systems capable of stopping multiple processes.
• REVIEW original equipment manufacturer (OEM) support, service response times and obsolescence risk.
• MAINTAIN critical spares based on lead time and operational impact鈥攏ot price alone.
• BACK UP software, parameters and equipment configurations, and test whether they can be restored.
• DOCUMENT manual workarounds and alternate production capacity where feasible.
• PRACTICE critical decisions through a disruption scenario before an actual outage compresses the timeline.

Recovery planning should reach beyond maintenance. Operations, engineering, information technology, finance, safety and leadership each see a different dimension of the potential loss. Bringing those perspectives together reveals how the system behaves as a whole, and where recovery could stall.

Connected Systems Create Shared Responsibility

The connections surrounding automated equipment extend beyond the production line. A manufacturer may purchase equipment from an original equipment manufacturer, hire an integrator to connect it, rely on a software provider for controls and engage contractors for maintenance. Employees operate the finished system, vendors access it, and automated vehicles may move materials around it.

When everything works, the arrangement can feel seamless. When a loss occurs, the boundaries between those roles can become consequential. Who controlled the work? Who approved the change? Which component or decision contributed to the event? Which agreement defines responsibility?

A contractor may enter an active production area to service equipment unfamiliar to plant employees. An integrator may modify a safeguard to improve throughput. A software update may change how equipment responds without changing its physical appearance. An automated guided vehicle may share space with pedestrians, forklifts and temporary workers.

These interactions deserve particular attention. OSHA notes that many robot-related incidents occur during 鈥攑recisely when employees or contractors may enter a system鈥檚 operating space.

The lesson is not to resist automation. It is to define ownership as carefully as the technology itself.

Before installation or modification, manufacturers can clarify who is responsible for design review, safeguarding, commissioning, training, change approval and ongoing maintenance. OSHA recommends that host employers, contractors and staffing agencies exchange hazard information and coordinate their work before operations begin.

Contracts should be reviewed alongside the work being performed鈥攏ot as a separate administrative exercise after the technical decisions have been made. Certificates, indemnification provisions and insurance requirements matter, but they do not replace coordinated field controls or a shared understanding of how work will be managed.

Preserve the Decisions Behind the Technology

Product liability questions can become more complicated when hardware, embedded software, sensors and outside components operate as one system. A defect allegation may involve the finished product, an incorporated component, a programming decision, installation work or warnings and instructions.

Manufacturers can improve clarity by documenting design decisions, supplier requirements, testing, acceptance criteria and changes over the product life cycle. When questions surface months or years later, traceability can help reconstruct not only what changed, but why.

Disciplined version control matters too. The ability to identify which component, configuration or software release was in use at a particular time can materially shape the response to an incident or allegation.

NIST鈥檚 operational-technology guidance identifies as important practices for environments where digital controls interact with physical processes. The same principle applies inside the plant. If a safeguard or control setting changes, the record should explain what changed, why it changed, who approved it and how the revised condition was validated.

The Workforce Is Part of the Connection

Technology may drive an automated system, but people still determine how effectively the operation recognizes trouble and recovers from it. Maintenance technicians, controls specialists, programmers and experienced operators may hold knowledge that is critical to safety and recovery. Workforce turnover in those roles can cost a plant more than capacity. It can lose the context needed to interpret alarms, restore systems and recognize when conditions are beginning to move outside the norm.

emphasizes the importance of educating and training everyone from floor operators to engineers and knowledge workers. Cross-training, succession planning and current procedures help preserve that knowledge and reduce reliance on a single employee, vendor or specialist during a disruption.

Clear expectations for vendors, contractors and other outside specialists are equally important. A vendor鈥檚 technical capability should connect to the plant鈥檚 safety rules, permit systems, energy-control practices and incident response. When servicing could expose workers to unexpected startup or released energy, OSHA鈥檚 provide an essential safety foundation.

鈥淩esilience comes from connecting the people who understand the equipment, the process, the contracts and the 听commitments made to customers,鈥� said Surguine.

鈥淲hen those perspectives come together before a loss, manufacturers can respond with far more speed and clarity when the unexpected happens.鈥�

Coordinate Risk Without Assuming Coverage

In a connected operation, a single event can have operational, property, workers鈥� compensation and liability consequences. That does not mean every effect is covered or that one policy responds to every circumstance. Coverage depends on the facts, terms, conditions and exclusions of the applicable policies. It does mean the exposure should be considered across operational, organizational and insurance boundaries before a loss occurs. Manufacturers can work with their agency and insurance partners to describe how systems connect, where critical third parties enter the operation, how contracts allocate responsibility and how one event could develop across people, property and production.

Those conversations are most valuable when they reflect the realities of the plant: the equipment that cannot easily be replaced, the knowledge concentrated in a few people, the vendor relationships that influence recovery and the customer commitments that leave little room for delay.

Automation succeeds through connection; risk management should, too. When operations, maintenance, safety, procurement, legal and insurance partners work from a shared understanding of the operation, manufacturers are better positioned to protect production commitments, preserve customer relationships and sustain the momentum of the business.

Looking Ahead

Discover how 糖心传媒鈥檚 manufacturing expertise, proactive Risk Management and specialized insurance solutions can help businesses better understand connected exposures, strengthen continuity and keep critical operations moving.

Walk through a modern manufacturing plant and the automation advantage is visible in motion. Robots lift heavy components. Sensors detect subtle changes in heat or vibration. Computer-vision systems inspect products at a speed the human eye cannot match. Together, these technologies can make work more consistent, precise and less physically demanding.

During , that progress offers an opportunity to recognize not only how manufacturing is changing, but the people adapting alongside it. As new technology takes on more of the repetitive, strenuous and precise work, protecting the people who build, maintain and work around these systems remains at the heart of that progress.

But as the work changes, the risk changes with it.

For years, workplace safety has moved in an encouraging direction. , the lowest rate in the current federal series. Employers reported approximately 2.5 million nonfatal workplace injuries and illnesses that year, down 3.1% from 2023. Yet contact incidents still accounted for 860,050 cases involving days away from work, job restriction or transfer across 2023 and 2024. The trend is positive, but the numbers also point to a changing challenge: understanding where serious consequences may now be concentrated.

The Automation Advantage Changes the Equation

Industrial automation is already operating at scale. , more than double the level recorded seven years earlier. In the United States, .

That growth can remove employees from repetitive, strenuous or hazardous tasks. , illustrating automation鈥檚 potential to improve safety when the technology鈥攁nd the work surrounding it鈥攊s thoughtfully designed and managed.

Yet an automated line can also concentrate activity around sophisticated equipment and tightly connected systems. A routine strain may be prevented when a robot performs the lift. But when an employee enters the system to diagnose a fault or clear a jam, a routine intervention can involve stored energy, unexpected movement and multiple connected components.

Building safety is something many people do not think about until something goes wrong.

A power outage suddenly brings operations to a halt. A leaking roof damages equipment after a heavy storm. An emergency exit blocked by stored materials becomes a serious concern during an evacuation drill.

More often than not, the disruptions that impact businesses the most begin as small issues that develop quietly over time. The safest workplaces are usually built on consistent preparation long before an emergency ever occurs.

Safety in the Workplace

Proper building safety helps reduce the risk of accidents and injuries caused by fire, structural concerns, falls, electrical hazards, and other workplace exposures. It is especially important in facilities with aging infrastructure, demanding operations, high foot traffic, or hazardous materials.

help provide guidance around fire prevention, electrical safety, emergency preparedness, and fall protection. OSHA data that fall protection, ladder safety, and hazard communication remain among the most frequently cited workplace safety concerns nationwide.

Building safety also plays an important role in business continuity. Electrical failures, fire hazards, water damage, and deferred maintenance issues can quickly disrupt operations, impact productivity, and create costly downtime if left unaddressed. the importance of facility preparedness and emergency response planning to help businesses respond more effectively during disruptions, severe weather events, and other unexpected emergencies.

The Importance of Built-In Building Safety

Creating a safer workplace often comes down to small, consistent actions that help prevent larger problems later. Businesses can strengthen building safety by focusing on the following practices:

• : Buildings should be inspected routinely to identify and address potential hazards before they worsen. Electrical systems, HVAC systems, elevators, roofs, and fire protection equipment should all be evaluated regularly to help support safe operation.
• : Employees should understand how to recognize potential workplace hazards and how to respond during emergencies. Training can include evacuation procedures, hazard reporting, proper equipment use, and workplace safety best practices.
• Clear Guidelines: Safety expectations and emergency procedures should be clearly communicated throughout the organization. This includes guidance around emergency exits, hazardous materials, contractor safety, and incident response protocols.
• Updated Equipment: Aging infrastructure and outdated equipment can increase exposure to operational disruptions and workplace safety concerns. Proactively upgrading systems can help businesses improve reliability and reduce risk.
• Severe weather, utility interruptions, and unexpected emergencies can affect businesses of any size. Developing response plans in advance can help organizations respond more confidently and decisively when conditions change quickly.
• : Employers should comply with OSHA standards for building safety. Failure to comply can result in costly penalties, fines, and preventable workplace injuries.

Building Safer, Stronger Workplaces

Building safety is about more than compliance alone. It is about creating workplaces that help protect employees, support daily operations, and strengthen long-term resilience. The strongest safety programs are built through preparation, consistency, and a proactive approach to identifying risks before they become larger problems 鈥� from routine maintenance and employee training to emergency preparedness and risk management planning.

At 糖心传媒, our Risk Management team works alongside policyholders to help identify exposures, strengthen workplace safety strategies, and support safer, stronger operations built to meet the moments that matter most.

For many manufacturers, the most significant product liability exposures don鈥檛 originate on the shop floor.听 They start upstream – in the supply chain.听 As products become more component-driven and sourcing networks expand across regions and borders, failures tied to supplier materials, parts, or processes increasingly drive recalls, litigation, and adverse loss development.

That shift is in national data.听 Federal recall dashboards hundreds of consumer and industrial product recalls each year, many traced back to component failures or supplier-driven defects rather than final assembly errors.听 In these moments, legal responsibility doesn鈥檛 pause to ask where a failure originated – it flows directly to the brand owner.

That鈥檚 why a proven supplier risk management program isn鈥檛 a procurement exercise.听 It鈥檚 a core product liability control.

鈥淲hen a supplier issue surfaces, it鈥檚 rarely abstract,鈥� said Eric Austin, Risk Management Expertise Specialist at 糖心传媒.听 鈥淚t鈥檚 a real product, in a real customer鈥檚 hands, with real consequences.听 The manufacturers that hold up best are the ones who treated supplier oversight as a liability decision long before it became a legal one.鈥�

Where Liability Really Begins

A formal supplier approval process should exist before any material or component enters production.听 This process must verify technical capability, manufacturing capacity, and quality systems – not rely solely on price, availability, or long-standing relationships.

Written supplier standards are essential.听 They clearly define expectations for quality, safety, and regulatory compliance, ensuring suppliers understand that conformity is a contractual and operational requirement, not an assumption.听 When quality standards at the supplier do not match those of the manufacturer, risk is effectively embedded into every product delivered.

From a liability standpoint, this step sets the tone.听 Approval criteria, documentation, and accountability create a defensible baseline – one that demonstrates intent, diligence, and control if a claim ever arises.

Proven Supplier Controls

Not all suppliers carry the same level of risk, and effective programs reflect that reality.听 Risk-based supplier tiering distinguishes between critical and non-critical components, allowing oversight to scale with exposure.

Higher-risk suppliers typically include safety-critical parts, controllers, or components where failure could reasonably lead to injury, fire, or significant property damage.听 Concentrating audits, testing, performance monitoring, and documentation on these inputs improves control where it matters most – without burdening low-risk suppliers.听 This disciplined prioritization mirrors how defects surface in complex manufacturing environments, particularly in cases tied to component failure.

Traceability Limits Exposure

Incoming inspection and quality verification remain essential, even with long-standing suppliers.听 What separates resilient manufacturers from vulnerable ones is how quickly they can isolate exposure when a defect emerges.

Traceability and recordkeeping systems that link suppliers, materials, production runs, and customers enable rapid containment.听 In recall or claim scenarios, traceability often determines whether exposure is limited – or multiplied.听 Federal recall consistently that faster identification and narrower recall scope reduce downstream harm and cost.听 Incoming inspections supported by robust documentation also play a critical role in liability allocation, helping identify where failure occurred if a product malfunctions after delivery.

鈥淭raceability isn鈥檛 about paperwork – it鈥檚 about leverage,鈥� explains Austin.听 鈥淲hen you can clearly connect a defect to a specific supplier, lot, or change, you protect your customers and your balance sheet at the same time.鈥�

When Change Becomes Risk

Supplier change-management procedures are often overlooked – despite being one of the most common liability triggers.听 Manufacturers should require advance notice and approval for changes to materials, tooling, processes, formulations, or sub-suppliers, supported by periodic audits that confirm approved processes remain in place.

Without formal change control, suppliers may introduce modifications the manufacturer never sees.听 When production is moved offshore or subcontracted, quality systems and contractual protections can shift quietly – an issue frequently uncovered only after failures occur in .听 At that point, exposure is already embedded.

This is where supplier oversight becomes a living control – one that evolves with production realities instead of lagging behind them.

Make Risk Transfer Real

Supplier contracts should do more than exist-they should work.听 Clear provisions for indemnification, warranties, and responsibility for defects align legal accountability with how risk actually moves through the supply chain.听 Insurance verification, including certificates that confirm appropriate limits and active product coverage, must be reviewed and monitored as living documents, not filed away.

Risk transfer only holds if the supplier can financially stand behind it.听 When indemnification language is unenforceable or insurance coverage lapses, manufacturers effectively absorb supplier defects themselves-a dynamic that in product liability litigation and recall outcomes where upstream parties lack the resources to respond.听 In those moments, responsibility follows visibility.听 Claims flow downstream to the brand owner, not upstream to the party that caused the failure.

Compliance Is the Defense

Suppliers must meet all applicable regulatory requirements related to product safety, labeling, environmental standards, and industry-specific regulations.听 Manufacturers remain visible defendants in product claims regardless of where non-compliance originates.

If a product is made for consumption in the U.S., liability can vary by state.听 Aligning supplier practices with the most stringent applicable requirements provides stronger protection.听 For internationally sold products, compliance complexity increases further, reinforcing the need for disciplined verification and documentation.

Build a More Resilient Supply Chain

A disciplined supplier risk management program strengthens product quality, limits recall scope, and improves defensibility in product liability claims.听 By combining formal supplier approval, risk-based oversight, traceability, change control, contractual safeguards, and compliance verification, manufacturers can meaningfully reduce downstream liability while maintaining an accountable and resilient supply chain.

At 糖心传媒, this work happens alongside agents and policyholders every day – translating real-world operational insight into practical controls that hold up when pressure hits.听

To learn more about how 糖心传媒 helps manufacturers strengthen supplier oversight and protect their business, visit our website.

The information provided in this article does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials contained in each article are for general informational purposes only.

When an organization produces goods, the hope is that the products are fault-free. However, there may be instances when a product could become dangerous to the public and it鈥檚 the company鈥檚 responsibility to inform consumers about these risks.

This responsibility is referred to as the 鈥渄uty to warn.鈥� The duty to warn doctrine is based on the idea that consumers should be able to make informed decisions about whether to use a product. If a product is dangerous, the manufacturer has a duty to warn consumers about those dangers so they can make an informed decision about product usage.

I talk about this, among other important product liability topics, in the February 2026 Risk Management webinar presentation: .

Manufacturers must remember that the duty to warn includes products that are safe, designed and manufactured well, but normal function can still cause injuries. An obvious example is a chainsaw, but we also see warnings appearing on plastic bags, buckets or other seemingly innocuous items that may present a hazard to children.

Duty to warn covers reasonably foreseeable use and misuse. Inhaling aerosol propellants, for instance, could be considered reasonably foreseeable misuse.

Failing to warn, failing to instruct or issuing unclear warnings are among the leading allegations in product liability claims. 

• Failure to warn: No warnings are provided about a known risk.
• Failure to instruct: Instructions don鈥檛 clearly explain how to use the product safely or how to avoid foreseeable misuse.
• Inadequate warnings: Labels or manuals don鈥檛 clearly communicate the hazard or do so in a way the average user will understand. 

When warnings are inadequate, injured parties can argue that the product itself was defective because consumers weren鈥檛 informed about risks they could not reasonably anticipate.

The duty to warn is rooted in the legal principle of negligence 鈥� a failure to exercise reasonable care that causes harm to others. 

To establish negligence, a plaintiff generally must show that:

1. The defendant owed the plaintiff a duty of care.
2. The defendant breached that duty.
3. The plaintiff suffered harm as a result of the defendant鈥檚 breach.
4. The harm was caused by the defendant鈥檚 breach.听

In product liability cases based on duty to warn, a 鈥渂reach鈥� often involves failing to provide adequate warnings or instructions about risks that could have been reasonably identified through testing, research or industry standards.

There are two primary ways a business can satisfy its duty to warn:

1. Warnings on the Product Itself

Labels affixed directly to the product 鈥� especially when the user may not see packaging or manuals 鈥� need to be clear, conspicuous and understandable.

2. Warnings Through Supporting Materials

Instructions, manuals, safety guides and other product documentation can provide detailed guidance about how to safely use the product and avoid known risks. 

Effective warnings should:

• Describe the risk clearly,
• Be visible and easy to understand and
• Cover both intended use and reasonably foreseeable misuse.

ANSI Z535.4-2023 is a  on the design and content of safety warnings. The standard is not legally binding, but it is widely used by businesses to comply with their duty to warn. The standard is a valuable resource for businesses that want to ensure their warnings comply with their duty to warn. It covers a wide range of topics for warning labels, including purpose, type, content, format, placement and testing.

While ANSI Z535.4-2022 is not a legal document, it is often used as evidence in product liability lawsuits. If a plaintiff is injured by a product, it may be argued that the manufacturer failed to provide adequate warnings about the dangers of the product. If the manufacturer followed ANSI Z535.4-2022 in designing and developing the warnings, this may help defend the manufacturer against the lawsuit.

Overall, ANSI Z535.4-2022 is a valuable resource for businesses wishing to comply with the duty to warn. However, it is important to note that the standard is not a guarantee of safety or immunity from liability. The standard is only a guideline and there may be cases where a manufacturer can comply with the standard and still be found liable for a product liability lawsuit.

Duty to warn should be considered early and throughout the product lifecycle 鈥� not just at launch. 

A practical approach includes:

• During design and development: Identify intended use, target users and hazards.
• Before market release: Evaluate foreseeable misuse and develop warnings/labels accordingly.
• After product launch: Adjust warnings based on customer feedback, complaints or evidence of misuse. 

Organizations should document this process and continually reassess warnings as new information emerges.

Failure to warn can expose a company to liability even when the product itself is safe by design. Providing clear, effective warnings helps:

• Reduce risk of injury and liability claims
• Demonstrate reasonable care in product development
• Build customer trust and safety reputation
• Support defense in litigation by showing adherence to industry best practices

A strong duty-to-warn strategy is an essential component of an overall product liability risk management program.

If you manufacture or distribute products, taking a strategic approach to warnings and instructions can significantly strengthen your product safety posture.

Working with experienced risk advisors 鈥� like those at 糖心传媒 鈥� can help you evaluate warning requirements, apply best practices and align your product liability program with real-world risks.

In his current role at 糖心传媒, Eric assists with the review of manufacturing accounts, the products produced, and coordinates with underwriting teams on potential issues identified, while helping to coach risk management consultants prior to visiting prospective accounts. Eric has been a featured speaker for the National Pool Builder鈥檚 Association meeting, providing safety instruction to company ownership personnel. Additionally, he created the widely successful . Eric was named 糖心传媒鈥檚 Loss Control Consultant of the Year in 2012 and 2023, and has been nominated for this honor two other times. He has been published in Safety and Health Magazine, as well SafetyInfo.com鈥檚 online magazine. 

The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information, content, and materials contained in this article are for general informational purposes only. 

This article answers the essential questions businesses have about strengthening product liability programs to mitigate risks and enhance overall safety.

What Is Product Liability?

Product liability refers to the legal responsibility manufacturers, distributors, suppliers and retailers face when a product causes bodily injury or property damage.

Claims typically arise under three legal theories:

• Negligence (failure to exercise reasonable care in design, production or warnings)
• Strict liability (liability regardless of fault if a product is defective)
• Breach of warranty (failure to meet expressed or implied product guarantees)

Because multiple parties in the supply chain can be named in a lawsuit, even companies far removed from the manufacturing floor may face significant financial exposure.

What Are the Main Types of Product Defects?

Understanding defect categories is foundational to managing product liability risk. Although nearly any aspect of a product can lead to liability claims, there are three main categories:

1. Design Defects

These occur when a product is inherently unsafe due to its design 鈥� even if manufactured correctly. Risk mitigation often requires rigorous design review, engineering validation and hazard analysis before market release.

2. Manufacturing Defects

These arise during production, assembly or distribution. Even a well-designed product can become dangerous if quality control processes fail. Preventive controls typically include documented manufacturing procedures, supplier oversight, batch testing and inspection protocols.

3. Failure to Warn (Marketing Defects)

These involve inadequate instructions, labeling or warnings regarding foreseeable risks. Clear communication about proper use, installation, storage and maintenance can significantly reduce liability exposure.

Proactively addressing all three categories helps reduce both claim frequency and claim severity.

Why Should Companies Regularly Evaluate Their Product Liability Programs?

Product liability risk is dynamic. Regulatory standards evolve. Product complexity increases. Global supply chains introduce new vulnerabilities.

A structured evaluation helps organizations:

• Identify gaps between current practices and industry best standards
• Align product safety protocols with evolving legal requirements
• Improve internal documentation and traceability
• Strengthen recall readiness
• Reduce the likelihood of catastrophic loss events

Regular review ensures that your product liability program evolves alongside your operations rather than reacting after a loss occurs.

“It鈥檚 not just about the product itself 鈥� it鈥檚 about the processes, documentation and communication behind it,” says Eric Austin, Risk Management Expertise Specialist at 糖心传媒. 鈥淎 solid liability program is like a safety net. Without it, a slight oversight can have significant financial and reputational consequences.鈥�

How Can You Measure the Effectiveness of Your Product Liability Risk Management Program?

To evaluate the effectiveness of a product liability program, organizations should focus on several key metrics that provide insight into the program鈥檚 performance. These metrics can be broadly categorized into preventive, reactive and various post-incident qualitative metrics.

Preventive Metrics: Focus on measures to prevent defects and ensure product safety before products reach the market. These include:

• Complaints and Warranty Issues: Prior to a product failure, a company may receive complaints about the performance of a product or part, or there may be warranty issues. Although a company may not like paying out warranty claims or listening to complaints, addressing issues during this phase reduces the likelihood of future liability claims.
• Compliance Rate with Safety Standards: Regular legal review of product instructions and warning statements is crucial. What was considered 鈥渂est in class鈥� 10 years ago may not be today. Researching recalls, lawsuits, or other issues with similar products can help identify necessary changes.
• Quality Control Audit Scores: Regular audits of quality control processes reveal how effectively a company is identifying and addressing potential product defects before they lead to liability issues. Many industries have specific standards such as ISO, IATF, HACCP, and others. Understanding applicable standards enables a better evaluation of a program and the audit methods in place.

Reactive Metrics: Assess how well the products liability program responds when an issue arises, including how efficiently it manages claims and resolves incidents.

Post-Incident Review: After resolving a product liability issue, conducting a thorough review to identify lessons learned, improve processes and enhance the overall effectiveness of the program. If complaints or warranty issues were noted prior to the failure, it鈥檚 essential to determine why changes were not made and whether complaint or warranty personnel communicated the issues to design or manufacturing.

Product Recall Procedures: Well-defined protocols for recalling defective products quickly and efficiently are crucial, including communication strategies with consumers, retailers and regulatory bodies. Questions about product traceability and purchaser identification are pertinent.

Crisis Communication: Plans for communicating with stakeholders, the public and media during a product liability crisis aim to maintain transparency, trust and minimize reputational damage.

Corrective Action: Processes for implementing corrective measures to address the root cause of the defect or incident, preventing future occurrences, and updating safety standards and procedures accordingly.

鈥淭he most successful organizations treat metrics as an early-warning system,鈥� Austin contends. 鈥淲arranty data, customer complaints, even removed safety labels鈥攁ll of these are signals. If you capture and act on them quickly, you can help prevent much bigger problems down the road.鈥�

What Tools Strengthen a Product Liability Strategy?

Evaluating a product liability program involves checking the level of detail of the program itself and verifying that internal controls cover a wide range of topics, well beyond the categories of design and manufacturing defect, plus duty to warn. High-performing organizations typically incorporate structured evaluation tools such as:

Gap Analysis: Comparison of the current liability program to industry best practices, legal standards, and new precedents in liability cases with similar products.

• For instance, the standard for warning labels and statements was updated in 2022 and 2023. While not legally binding, this updated standard could be a factor in a liability case focusing on 鈥榙uty to warn.鈥�

Legal Reviews and Case Studies: Assessing changes in the legal environment, which vary by state and country. Adopting the most stringent standards, such as California鈥檚, could cover most other jurisdictions.

Customer Feedback and Warranty Data: Early indicators of potential issues that could turn into claims. Involvement of the Service Department is crucial as they can report not just product failures but also removed guards, labels, or other safety devices.

Simulations: Testing the traceability of products in the event of a recall and identifying key contacts and relevant government agencies. Simulations are vital tools in evaluating the effectiveness of a program.

Employee Products Liability Training: Ensuring that warranty and service departments communicate issues to design and manufacturing is crucial. Employee training and basic knowledge on product liability are valuable tools to prevent major failures.

Emerging technologies, new materials, expanded distribution channels and evolving consumer expectations all introduce new liability exposures.

Organizations that implement ongoing review cycles 鈥� rather than one-time audits 鈥� are better positioned to:

• Anticipate regulatory shifts
• Identify new product hazards
• Strengthen supplier risk management
• Improve documentation defensibility
• Enhance insurance alignment with operational risk

Continuous improvement reduces uncertainty and strengthens long-term resilience.

How Does a Strong Product Liability Program Protect Your Business?

A comprehensive product liability strategy supports:

• Reduced claim frequency and severity
• Improved regulatory compliance
• Faster, more coordinated recall response
• Stronger insurer relationships
• Protection of brand reputation and customer trust

Ultimately, it safeguards both your balance sheet and your market position.

Ready to Strengthen Your Stand on Product Liability?

Evaluating your product liability exposure requires more than reviewing coverage limits. It demands an integrated strategy that connects product design, manufacturing controls, supplier oversight, documentation, training and insurance protection.

Working with an experienced carrier like 糖心传媒 can help you assess vulnerabilities, refine risk controls and align your insurance program with operational realities.

About the Author

In his current role at 糖心传媒, Eric assists with the review of manufacturing accounts, the products produced and coordinates with underwriting teams on potential issues identified, while helping to coach risk management consultants prior to visiting prospective accounts. Eric has been a featured speaker for the National Pool Builder鈥檚 Association meeting, providing safety instruction to company ownership personnel. Additionally, he created the widely successful . Eric was named 糖心传媒鈥檚 Loss Control Consultant of the Year in 2012 and 2023 and has been nominated for this honor two other times. He has been published in Safety and Health Magazine, as well as SafetyInfo.com鈥檚 online magazine.

The materials and information found here are informational resources and do not and should not be construed as direct processional, legal or other advice as to specific facts and circumstances.  It is recommended you always seek appropriate professional advice as to your particular circumstances.  糖心传媒 disclaims any and all liability for actions taken by you based on the content of these resources.

Understanding the Landscape Understanding PPE in Manufacturing

Personal Protective Equipment in manufacturing encompasses specialized clothing and devices designed to protect workers from job-related injuries or illnesses. This equipment includes items such as helmets, gloves, eye protection, and safety footwear鈥攅ach serving as a critical barrier against workplace hazards.

The Indispensable Role of PPE in Manufacturing

The manufacturing environment, known for its inherent risks, necessitates robust safety protocols with PPE at their core. Here鈥檚 why PPE is essential:

Comprehensive Protection: PPE shields workers from a variety of dangers, including physical injuries from machinery and harmful exposures to chemicals and noise.

Regulatory Adherence: Compliance with is not just about following laws鈥攊t鈥檚 about actively protecting the workforce.

Injury Prevention: Effective PPE usage significantly reduces the likelihood of workplace injuries, which companies substantial amounts in healthcare and lost workdays.

Enhanced Morale and Productivity: A safe worker is a happy and productive worker. Knowing that their safety is prioritized can boost employee morale and output.

PPE for Manufacturing Safety

Hard Hats: In manufacturing environments where there’s a risk of falling objects, are crucial for protecting your head from impacts and preventing serious injuries.

Safety Glasses: To safeguard your eyes from flying debris or hazardous chemicals, wearing is essential.

Face Shields: For enhanced protection of your face, eyes, and mouth, face shields are often used alongside safety glasses or goggles in particularly hazardous manufacturing settings.

Earplugs or Earmuffs: Manufacturing facilities can be extremely loud, making it vital to protect your hearing with to minimize noise exposure.

Protective Clothing: Depending on the nature of your work, many manufacturing facilities mandate the wearing of protective clothing such as gloves, aprons, overalls, and boots.

Breathing Masks: To prevent the inhalation of toxic chemicals, you may need anything from a simple paper mask to a more sophisticated . Regular use of masks can also help avert long-term respiratory issues.

Successful Implementation

Implementing a successful PPE program involves several key steps:

PERFORM regular Maintenance and Inspection: Continuous upkeep is necessary to ensure the protective gear remains effective.

CONDUCT thorough : Identifying potential risks is crucial in determining the necessary PPE.

ENSURE PPE must be appropriate for the hazard and correctly fitted to the individual.

PROVIDE comprehensive Training: Workers should be educated on proper PPE use, maintenance, and its limitations.

Looking Ahead

In observance of Manufacturing Day, we鈥檙e reminded of the critical role safety plays in the industry. It鈥檚 the ideal time to reevaluate your safety protocols and enhance PPE practices, ensuring that every worker benefits from the highest standards of protection. Don鈥檛 compromise on safety!

For tailored advice on PPE optimization and consultations with experienced risk management professionals, visit /services/risk-management/

The information provided in this article is for general informational purposes only and does not constitute legal advice.  We recommend consulting with an employment attorney to ensure compliance with all applicable laws and to receive legal advice tailored to your specific circumstances.

Manufacturers account for nearly of the U.S. economy鈥檚 total output, and the industry employs 8.4% of the workforce. Manufacturing remains among the top five largest employment sectors and is key to U.S. contributions, according to the United States Census Bureau. In fact, manufacturing generates approximately .

Roles within the sector are evolving as the industry landscape shifts, and the demand for highly skilled workers is rising across industries. Among the most in-demand manufacturing roles are those with a heightened digital skillset, focused in areas such as artificial intelligence and automation. In the next 10 years, four million roles will need to be filled in the sector. If left unfilled, missing manufacturing jobs could cost up to $1 trillion in 2030 alone, according to .

Leveraging Today鈥檚 Insights at Women in Manufacturing

糖心传媒鈥檚 experts recently engaged with industry leaders and learned more about today鈥檚 insights and takeaways by participating as exhibitors during the annual Women in Manufacturing (WiM) Summit.

鈥淚t was inspiring to exhibit and support the WiM鈥檚 largest conference to date 鈥� with 1,700 participants from 324 companies, 42 states and 16 countries 鈥� and showcase how 糖心传媒 supports manufacturing through our expertise and service capabilities with our in-person and virtual booths,鈥� said Cindy Slubowski, 糖心传媒鈥檚 Manufacturing, Wholesale and Distribution Market Segment Leader.

In addition to the exhibit booth, 糖心传媒 sponsored the summit鈥檚 鈥淔irst Timers鈥� reception and a 5K run for the Women in Manufacturing Educational Foundation, and company representatives attended the conference鈥檚 educational workshops and presentations.

鈥淭here were many inspiring and thought-provoking sessions, such as 21^st Century Rosies presented by Boeing 鈥� the home of the original Rosie 鈥攁nd hearing from trailblazing women who 鈥榗an do it鈥�, and who have found their place to succeed in a male-dominated field,鈥� said Slubowski.

The group learned about the 鈥�4.0 manufacturing modernization journey,鈥� an industry concept led by engineers and operations employees to address robotics, automation, virtual models designed to reflect a physical object (also known as digital twins), and digitization in legacy and new manufacturing plants. There were also informative sessions on emotional leadership and steering high-performing teams.听

鈥淭he session on globalization was especially fascinating as reshoring and nearshoring are realities we are starting to see and can expect manufacturing to increase in the U.S. and Mexico in the next few years,鈥� said Slubowski.

Protection Forged in Partnership

糖心传媒 is investing in our products and our people to help protect manufacturing businesses. Learn more about the unique coverage and safety technologies to complement your manufacturing programs, including new products and industry-leading service for more manufacturing businesses.

Beginning January 1, 2024, the rule requires businesses with 100 or more employees in certain high-hazard industries, to submit the data 鈥� of which they are already required to keep on file 鈥� to the appropriate OSHA department annually, including:

• Form 300-Log of Work-Related Injuries and Illnesses
• Form 301-Injury and Illness Incident Report

These reports will be submitted in addition to the current requirements of providing Form 300A-Summary of Work-Related Injuries and Illnesses, .

For accuracy, the companies will be required to include their legal company name when electronically submitting illness and injury data. Some of the collected data will be published by OSHA for viewing by the general public. This practice will support the sharing of information about the organizations鈥� safety practices and ultimately help reduce losses related to injuries and illness, according to OSHA.

The new requirement will expand on amendments determined by OSHA last year that require specific establishments in certain high-hazard industries to electronically submit information from their Log of Work-Related Injuries and Illnesses and Injury and Illness Incident Report.

To learn more about the rule and submission expansion, read the .

Reduce Losses Through Innovative Safety Programs

Our Risk Management team collaborates with you to analyze your potential risks and deliver customized solutions that help ensure your company is a safe workplace while simultaneously supporting your operational business goals. To learn more, reach out to RiskManagement@糖心传媒.com.

This time-consuming issue occurs when processes are halted for an unplanned event, and materials or goods are not being produced as anticipated. The setback is often due to equipment failure, unanticipated maintenance, worker shortages, or material issues.

Businesses can help control the impacts of downtime through a mix of proactive efforts and technology.

What Happens During Downtime?

During manufacturing downtime, employees are involuntarily unproductive, and this can cause significant process ramifications including lost 鈥渨rench time,鈥� machine idle time, project backlogs, and additional future maintenance needs. It can also ultimately impact a businesses鈥� bottom line through:

• Impact on Labor 鈥� Wages, insurance, overtime
• Cost of Waste 鈥� Incomplete or discarded parts
• Restart Costs 鈥� Lost revenue, production restart

How to Minimize Downtime

There are various methods to enable more efficient maintenance processes and minimize downtime.

One such method is total productive maintenance, in which all parties work together to reduce breakdowns and improve efficiencies, including plant workers, managers, maintenance engineers, safety supervisors, and quality control professionals. This approach , and encourages operators to effectively manage their own equipment. Preventative routines are part of total productive maintenance and plans for scheduled maintenance and actions to prevent breakdowns 鈥� anticipating and correcting equipment failure before it occurs. This planning can provide long-term system reliability and strengthen inventory management.

Strategies to reduce downtime can be enhanced through use of wearable technologies. These devices use belt-mounted, upper arm, or phone applications used by workers while performing their jobs. The devices provide real-time feedback on movements, posture, location and biomechanics. The software generates data to help adjust unsafe movements and reduce future process disruptions.

With all preventative programs, clear communication and training is key to effective implementation.

Learn More

糖心传媒鈥檚 risk management specialists are committed to supporting you in identifying hazards to reduce risk and, ultimately, your claims. To implement your own downtime program, contact your 糖心传媒 risk management consultant or reach out to riskmanagement@amerisure.com