Your Guide to Debt and BankruptcyYour Guide to Debt and Bankruptcy

About Me

Your Guide to Debt and Bankruptcy

About 10 years ago, I secured my dream job with one of the largest corporations in the country. The job came with a substantial increase in pay and I soon looked for a large house for my family. After living the life I dreamed of, I was let go from my current position. I had a large amount of savings, but the economy took a turn for the worse and savings were quickly drained. I soon became stressed about finances. I could not pay the mortgage and bill collectors started to call my house. I refused to be defeated though, so I met with a bankruptcy attorney instead. I live a much simpler life now with my family, and I want you to know that financial stress does not have to affect you for years. Read my blog to learn about bankruptcy, debt laws, and how to hire an attorney.

Five Ways To Protect Yourself From Product Liability Claims

If you bought your child a toy and the toy broke and injured them due to faulty manufacturing, you would probably want to sue the toy's manufacturer. The same is true of your customers. If something that you make is defective and leads to an injury, they will probably want you to compensate them for the damages. This is called a product liability lawsuit, and as a business owner, it could be very detrimental to your bottom line and reputation. Here are five ways to protect yourself from such lawsuits.

1. Hire a great quality control team

Quality control is sometimes seen as a costly, unnecessary step in the manufacturing process. However, even if your QC team only catches one poor-quality or incorrectly made item a year, they are still preventing those defective items from being sold and potentially causing injuries. A good QC team will also recognize any trends in products so you can catch and reverse the trend before it causes harm. For example, they may notice that the bolts on a certain product are slowly getting closer and closer together. Upon investigation, you may find this is because a machine has been improperly adjusted. Fixing the machine will keep the problem from getting worse and leading to injuries.

Take your QC department seriously, and spend time carefully interviewing and selecting employees for those positions. They are your first line of defense against defective products and the resulting liability claims.

2. Read customer reviews

Set aside a little time every week to read customer reviews on your product. Specifically look at the negative reviews, and see if you spot any patterns of things going wrong. For instance, if five customers complain that they had to tighten bolt x when they received the product, this might indicate you need to address the issue with bolt x before it becomes a danger to someone. You could even assign one of your QC employees to reading the reviews. Make sure they know to report back to you if they see a pattern of similar complaints.

3. Pay for product liability insurance

Talk to your insurance provider, and make sure you include product liability insurance in your policy. It's not always cheap, but it is a lot cheaper than being sued for damages caused by your product. If you are sued, the policy should cover most or all of the costs so you do not have to pay out of pocket. If you make a more hazardous product, like a welding machine or a vehicle, you may want more coverage since more damage could potentially be caused.

4. Have an attorney on retainer

Hopefully you already have a business attorney on retainer so you can come to them with questions and concerns as needed. Make sure this attorney is someone who has experience with product liability. Do not wait until a claim is filed against you to talk to your attorney, either. Ask them to review your procedures and to tell you if there is anything you can do, right now, to reduce the chances of a liability claim being made against you. 

5. Keep up on industry news

Make sure you subscribe to publications related to your industry. You may learn something new about making your product safer or learn from others' mistakes so you do not have to make your own. Even reading articles about your industry online from time to time can help keep you up to date on the latest safety measures.

Follow the tips above to reduce your chances of a product liability claim against your business. For more help, reach out to a product liability attorney in your area.