As a business owner, and especially as a manufacturer, there are three typical scenarios in which you might be facing a judgment arising from product liability. These scenarios can each result in a claim that would require product liability insurance to protect the business.
The first is human error during the manufacturing process. This could include a single part or component of the product being defective, or the omission of a crucial part from the product. If the party suing you for damages or injury arising from a defective product can prove that you deviated from specs or standards while creating the product, you could be facing a large claim.
The second scenario is when instructions and/or warnings are left off of the packaging or are not clear enough. A common issue here is that of language translation. When your instructions and warnings are translated into other languages for foreign packaging, do they mean the same thing?
The last scenario that can commonly induce a large products liability claim is simply that your design is flawed. Sometimes there is no human error, no lack of warnings; it is simply an element of the design that is lacking in safety. Often, this is because a manufacturer is too quick to market a product and doesn’t spend enough time in testing.