Product liability is one of the most common nightmares of product distributors (sellers, lease-granters or manufacturers).
These days, there is hardly any company that has been able to escape the wrath of product liability charges.
These lawsuits that involve product liability claims that may drag not only the finances of your company downhill, but they also jeopardize the reputation of your company!
So, it is always better to avoid such lawsuits and take extra caution to combat or tackle them well.
When you want to tackle an issue, you must first have complete or ample information about it.
Without having the right amount of information and insight into the problem issue, you may end up making flawed decisions. So, let’s analyze the types of liabilities in more detail now.
Most of you must have been aware of the two basic categories or types of liabilities: ‘fault’ and ‘strict’.
Here, in this article, we are going to discuss both types in more detail.
The fault-liability type is more about when a customer or buyer suffers injury because of the damage inflicted by the flawed product.
Moreover, here the customer brings up the objection that the product has been flawed, and the company omitted or misrepresented the information before selling it. In this case, the retailer or distributor can be held responsible for fraud or intentional misrepresentation.
Moreover, if the product has been assembled wrongly or tested inappropriately or failed due to lack of care, the distributor can be charged with negligence.
The second type of product liability is more complex and involves situations that do not include any faults.
In this liability type, the charge arises due to inappropriate instructions.
Having product liability insurance coverage can help you avoid all the undesirable conditions due to liability issues.