Orlando manufacturers insurance

Product Liability Coverage for Manufacturers

Manufacturers are quite familiar with issues of product liability. They create products for distributors and wholesalers to sell to consumers. Those same consumers expect to purchase quality merchandise and this may include consumers worldwide. When problems do arise, Orlando manufacturers insurance coverage is available and will provide payments for any damages that may occur.

A manufacturer can be held liable as a result of negligence, a breach of product warranty, or strict liability. Strict liability means that a manufacturer is responsible for injuries caused by a product, while negligence can occur at any time with anyone involved in the production of the product being deemed responsible. Claims are often the result of someone acting without a reasonable care in making sure that the product was safe for consumers.

Products should be inspected and tested for safety

As a necessary precaution, products should be run through a series of tests to determine if an item is in anyway defective, and at that time the manufacturer should be informed or made aware of a defect is discovered that makes the product unreasonably dangerous. This process certainly not fails proof, which can lead to a product recall despite the likelihood that reasonable care in the development process was being exercised.

The most important difference between strict liability and negligence is that if a manufacturer is charged with negligence, they will not be held liable if they took reasonable care to look for defects and avoid them. However, anytime a manufacturer is charged with strict liability, due to an unreasonably dangerous defect that exists in the product, this means that no matter how much care was exercised in its creation, the manufacturer will still be held accountable.

Breach of warranty issues

A breach of warranty states that it has been determined that an assurance or promise about the quality of a product has been proven to be false. Any manufacturer responsible for their warranty is liable to the party to whom the warranty was made. A warranty is often expressed in the description of the product. For example, one can describe an article of clothing as colorfast.

An implied warranty means that the buyer can assume certain assurances about the product to be true unless otherwise stated. To avoid misunderstandings, some items are marked and sold “as is”, which then absolves blame for any existing defects. Getting a policy from an Orlando manufacturers insurance agency for any product liability issues is a must to help safeguard your business in the event of a lawsuit.