product liability – 糖心传媒 Fri, 15 May 2026 15:19:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.5 /wp-content/uploads/2024/03/cropped-cropped-favicon-512x512-1-32x32.png product liability – 糖心传媒 32 32 What is Duty to Warn? Understanding an Important Element of Product Liability /blog/duty-to-warn/ Thu, 14 May 2026 18:37:36 +0000 /duty-to-warn-understanding-an-important-element-of-product-liability/ By: Eric Austin
Risk Management Expertise Specialist 鈥 Products Liability

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: .

What Is Included in Duty to Warn?

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.

What Happens If Warnings Are Missing or Inadequate?

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.

How Is Duty to Warn Related to Negligence?

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.

How Can Companies Fulfill Their Duty to Warn?

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.

What Are the Standards for Warning Content?

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.

How Do Warning Standards Apply to Products Liability Lawsuits?

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.

When Should Businesses Start Thinking About Duty to Warn?

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.

Why Does Duty to Warn Matter for Your Business?

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.

Want to Improve Your Duty-to-Warn Practices?

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.

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 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. 

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Beyond the Fine Print: Your Product Liability Questions, Answered /blog/strengthening-your-stand-on-product-liability/ Thu, 30 Apr 2026 15:13:53 +0000 /?p=6980 Originally published October 23, 2025

Evaluating a product liability program is critical for any business that manufactures products for sale to both businesses and individuals. If the products are consumer goods or play a critical role in another product, the liability program, quality control and product documentation should be considered fundamental to the business. The potential risks associated with defective products can lead to significant financial losses, legal repercussions and damage to a company鈥檚 reputation. 

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.

Eric Austin, Risk Management Expertise Specialist at 糖心传媒

“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:听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:听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:听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:听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:听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.

Why Is Continuous Improvement Critical in Product Liability Management?

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听. 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听Safety and Health听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.

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Behind the Label: Navigating Product Liability /blog/behind-the-label-navigating-product-liability/ Mon, 12 May 2025 11:00:00 +0000 /?p=7728 Read more]]> When we think of product liability, our minds often go straight to the manufacturer鈥攖he company behind designing and producing the product. It seems natural that they would be the ones held responsible for issues like design defects, manufacturing defects, or even inadequate warnings.

But here鈥檚 where it gets interesting: in several cases, companies that don鈥檛 actually manufacture a product can still be considered manufacturers of record and be held liable for product liability claims.

鈥淧roduct liability isn’t just about who made it鈥攊t’s about who touched it, sold it, shipped it, or put their name on it,鈥 says Eric Austin, 糖心传媒 Risk Management Expertise Specialist.

Curious? Let鈥檚 break it down with some real-world scenarios.

Private Labelling and Branding

Scenario: Picture this: a retail chain partners with a third-party manufacturer to produce goods under its store brand. You鈥檝e probably bought these items鈥攖hink generic cereals or store-brand electronics.

Manufacturer of Record: Even though the retailer didn鈥檛 physically produce the goods,听once they apply their brand to the product and sell it, they鈥檙e considered the manufacturer of record. That means they could be responsible for any defects, safety issues, or liabilities tied to the product.

Example: Perhaps a store-brand toaster causes a house fire due to a manufacturing defect. If the store sold the toaster under their label, they could be considered the manufacturer of record, even though a separate factory made the product.

Assembled Products

Scenario: Some companies assemble finished products using parts sourced from various manufacturers, branding the final product as their own.

Manufacturer of Record: Even if the company didn鈥檛 create the individual components, may place them in the manufacturer鈥檚 role. They could be liable for any defects introduced during assembly or related to the final product鈥檚 performance.

Example: Think about a laptop company that builds computers using processors, hard drives, and screens sourced from other suppliers. If a short circuit caused by faulty wiring damages the laptop, the assembler鈥攏ot the component makers鈥攃ould likely face the liability.

Companies That Customize or Modify Products

Scenario: A company buys standard products but adds before selling them to customers.

Manufacturer of Record: Once a product is altered, the company responsible for the changes typically assumes liability for any issues resulting from those modifications鈥攅ven if the original product met all safety requirements.

Example: Picture a seller of industrial equipment adding custom electrical panels to machines. If the modifications lead to a fire or malfunction, the modifying company could be held liable as the manufacturer of record.

How Can a Company Protect Itself?

Becoming a de facto manufacturer doesn鈥檛 have to mean taking on massive risks. Implementing strong protections and best practices, as well as understanding how to protect your business from liability, is essential鈥攏ot just for legal reasons, but to help build consumer trust and brand resilience. Let鈥檚 dive into some practical strategies:

For Private Labeling and Branding

When you sell a product under your own brand name鈥攅ven if it鈥檚 manufactured by someone else鈥攜ou could be on the hook for its safety. That鈥檚 why detailed contracts with third-party manufacturers are important, including indemnification clauses can help protect you from certain losses, damages or liabilities that may arise from product defects. Also, require product liability insurance that names your company as an additional insured.

Beyond contracts, demand evidence of compliance with safety standards. Be sure to conduct routine quality control inspections and implement a recall response plan to address defects before they escalate into possible lawsuits.

For Assembled Products

If your product is the sum of many sourced components, liability could still fall on you. That鈥檚 why it is recommended you include indemnity clauses in supplier contracts and ensure all component suppliers carry adequate liability insurance, with your company listed as an additional insured.

At the operational level, conduct rigorous quality checks at every stage of the assembly process. Comprehensive liability insurance should cover the entire assembled product to protect against defects that arise during integration. Learn more about at the National Institute of Standards and Technology (NIST).

For Companies That Customize or Modify Products

Customizing or modifying existing products鈥攚hether through design tweaks or functional upgrades鈥攃ould transfer safety responsibility to you. Protect your business by clearly outlining liability in contracts and using disclaimers for unaltered components.

Crucially, test all modifications thoroughly and certify safety compliance with help from professional engineers when necessary. The Occupational Safety and Health Administration (OSHA) offers on modifying machinery and equipment safely.

Best Practices for All Businesses

Regardless of your business model, some liability protections are universal:

  • Robust Product Liability Insurance: This is your financial safety net for claims involving defects, injuries, or recalls.
  • Supplier Audits: Regularly verify that your suppliers meet safety and quality benchmarks.
  • Consumer Feedback Channels: Establish systems for customers to report issues and act swiftly on complaints.
  • Traceability Systems: Maintain detailed records of sourcing, testing, and manufacturing to streamline recalls and defend against legal claims.
  • Legal Counsel: Partner with professionals to draft airtight contracts and stay up to date with evolving regulations.

Looking Ahead

Navigating the complexities of product liability doesn鈥檛 have to be overwhelming. Understanding when your company might be considered a manufacturer, combined with proactive safeguards, can help reduce risk and protect your business. Whether you鈥檙e private labeling, assembling, or modifying products, preparation is key to staying ahead of potential challenges.

Prioritize quality control, strengthen your contractual protections, and ensure compliance at every stage of the process. With these steps in place, you can confidently manage liability risks while maintaining trust with your customers. For more expert advice, actionable resources, and tools to safeguard your business, visit our Risk Management page.

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

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Building a Cross-Functional Products Liability Program /blog/products-liability-program/ Tue, 01 Aug 2023 04:45:33 +0000 /building-a-cross-functional-products-liability-program/ Read more]]> By Eric Austin, Risk Management Expertise Specialist

In nearly every industry and sector, there is potential for error and unforeseen circumstances. It is critical for businesses that are involved in the selling and distributing of products to implement and maintain a product liability program to reduce their company鈥檚 overall risk.

A product liability program is a set of policies and procedures a business puts in place to reduce the risk of product-related injuries and lawsuits. The program should be designed to identify and control hazards, train employees on safe product use, and respond to product-related incidents.

How to Create a Product Liability Program

To create a product liability program, a business should first assess its risk. This involves identifying the types of products it makes or sells, the potential hazards associated with those products, and the likelihood of those hazards causing injuries. The business should also consider the potential costs of product liability claims, including medical expenses, lost wages and legal fees.

Once the business has assessed its risk, it can develop a product liability program to address those risks. The program should include the following elements:

  • Hazard identification and control: The business should identify and control any hazards associated with its products. This may involve redesigning products, adding warnings or instructions, or providing training to employees and customers.
  • Employee training: The business should train its employees on safe product use. This training should cover the potential hazards associated with the products, as well as the proper procedures for using and maintaining them.
  • Incident response: The business should have a plan in place to respond to product-related incidents. A plan should encompass procedures for reporting incidents, investigation, and corrective action.

Product Liability Across Functions

When building a product liability program, the business should also include multiple business functions. This should always include the following departments:

  • Engineering: The engineering department should be responsible for identifying and controlling hazards associated with products.
  • Manufacturing: The manufacturing department should be responsible for implementing the hazard controls identified by the engineering department. Note, this function may also encompass quality control, if assigned to the manufacturing department.
  • Quality Control: The quality control department should be responsible for ensuring that products meet safety standards.
  • Sales and Marketing: The sales and marketing department should be responsible for providing customers with accurate information about the risks associated with products.
  • Customer Service: The customer service department should be responsible for responding to customer inquiries about product safety.

By including multiple business functions in its product liability program, a business can help to reduce the risk of product-related injuries and lawsuits.

Keys to Program Success

Once the product liability program has launched, there are important steps to take to ensure it continues to run effectively and efficiently. Consider these tips for creating and maintaining a successful product liability program:

  • Ensure the program continues to be tailored to the specific risks of your business.
  • Obtain input from all relevant departments when developing and reviewing the program.
  • Train employees on the program and ensure that they understand their responsibilities.
  • Review the program regularly and make changes as needed.
  • Keep records of all product-related incidents and take steps to prevent future incidents.

By following these critical steps, businesses can help to protect themselves and their employees from the possible financial and reputational costs of product liability claims.

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.听Further, this information may not constitute the most up-to-date legal or other information.

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Product Liability and the Big Picture /blog/product-liability-2/ Fri, 03 Mar 2023 22:14:30 +0000 /product-liability-and-the-big-picture/ Read more]]> Guest Blog Author: Eric Austin (糖心传媒 Insurance)

When most people think of products liability, their first thought is around whether a product is safe to use. When creating a product, manufacturers typically focus on design standards, product testing, and the risks associated with packaging, such as instructions and warning labels. These elements are crucial to the safe use of a product, as well as to a company鈥檚 bottom line in the event of a liability lawsuit. These focus areas, however, can also leave out opportunities to further improve a product鈥檚 safety and reduce the impact of a potential lawsuit.

鈥淲hen looking at products liability, it is vital to factor in all aspects of the manufacturing process, from the conceptual phase to design and manufacturing to quality assurance, marketing, warranty, and service through end-of-product life. At each phase of the process, there are critical decisions and responses that should be addressed,鈥 said Eric Austin, 糖心传媒 Risk Management Expertise Specialist.

Product Safety in the Conceptual Phase

There are several historical examples of the need for product safety early in the product development process. The Gilbert U-238 Atomic Energy Laboratory was released in 1950, allowing children to use radioactive material to learn about nuclear and chemical reactions. In addition to a cloud chamber and a wire of Polonium 210, the kit also contained four glass jars containing Uranium-238. About 5,000 of these sets were sold before being removed from the marketplace 鈥 not because of the potential danger, but because the price of the set was considered too high for the time at $40. Although this may seem like an extreme example, the idea of providing radioactive materials to children should not have made it past the conceptual phase.

When looking at the big picture, your company should consistently review how products are evaluated, what could go wrong, and if similar products have resulted in losses and lawsuits. If the end user is a child, or if children have the potential to use the item, the standards should be much more stringent.

Design & Quality Assurance

During the design phase, there are several regulatory requirements and additional standards that may be in place and important questions a company should ask, such as:

  • Are the design and engineering teams aware of the standards that may apply to a new product?
  • If sub-contracted manufacturers are involved in the production process, should they have input on design? They may have pertinent insights on quality control and potential failures.
  • When are prototypes are created and, if so, how are these tested?
  • Are focus groups used with results being reviewed by engineering?

The design process should always be documented and include a method to review the effectiveness of the process and/or any changes to the product.

The manufacturing and quality assurance phase of product manufacturing should always address in-house vs. sub-contracted work. For example, is the product manufactured all or in-part by another company? 听If so, what type of supplier/subcontractor qualification processes are in place? If your company follows industry standards and regulations, does the subcontracted manufacturer or component supplier follow a similar or higher standard? Is the supplier/subcontractor/manufacturer based in the U.S.? If not does it have a U.S. presence? If the supplier/subcontractor/manufacturer has no U.S. presence, your company could pay for any loss caused by the non-U.S. entity as your company placed to product into the stream of commerce in the U.S.

Product Sales & Reviews

Once a product is ready for distribution, there are several questions that should be asked prior to selling the product in the marketplace:

  • What role does the sales team play, and is the sales network in-house or outsourced?
  • Have product ads been reviewed by the design, legal, and engineering teams?
  • Do you have recall procedures and/or product traceability? Can you determine if there are problems prior to a product failing or if the instructions are unclear?

It鈥檚 also important to carefully monitor social media accounts such as Yelp, YouTube, Twitter, and Google Reviews. Monitoring social media accounts allows your company the ability to ascertain that颅 a product may not work properly, the user has difficulties, the directions are not clear, or that the product fails quickly. Monitoring these sites and others also allows you to determine instances of product failure and, in certain instances, to try to resolve the issue prior to it going further.

Installation, Service & Repair

Three areas that are tied together in the manufacturing process are installation, service, and repair. In each of these phases, your company can help protect itself against a product liability lawsuit by asking the following questions: When performing an installation, can it be proved that the installation was performed correctly, with all aspects of a machine functioning properly, with all guards in place?

  • Are there photographs taken and is a specific checklist used?
  • Are service and repair teams are performing the same checks with the equipment, and do they have documented proof that all safeties and guards were installed and functional?
  • Are the service, repair, and warranty folks talking to the design team, and even sales?

Employees who work in the service, repair, and warranty departments should be having regular meetings with the design and engineering teams because this is where products may be failing in ways not originally predicted. For example, if a product is being returned with missing guards, or if the guards or warning labels are not lasting for the life of the product, the design and engineering teams need to be alerted as soon as possible. Likewise, repeated warranty issues on a specific item need to be addressed because this is where a potential recall or service bulletin may be considered. If these issues are continually popping up, the sales team will also need to be alerted when it comes to claims made about the product, warnings, changes to instruction manuals, etc.

Assessing the Big Picture

What does the big picture approach tell us about product liability and product safety? It鈥檚 easy to see that all departments and individuals must be involved in the process. From the concept and design phase, to manufacturing, service, repair, and warranty work, all employees involved should be trained and ready to alert others if they see a potential issue.

鈥淚ndustry standards regarding quality and labeling should be utilized, but the process goes much deeper,鈥 Austin said. 鈥淥ne missing piece may result in a situation that could result in an injury or death, plus the loss of revenue and company reputation.鈥

Does your program address the big picture?

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