Defective Products

The Massey Clark Fisher Team | 01/23/2012

Tags: community • home insurance • homeowners insurance • insurance • local • safety tips • seasonal • tips

Having strict controls over the manufacture and distribution of your products is essential to every business. Design and construction of any product, large or small, must conform to the appropriate safety standards and specifications, and be strictly monitored. Failure to do so with the result that a defective product is released into the marketplace can have catastrophic consequences. Claims under your Florida general liability insurance may range from minor to large scale and leave your business vulnerable to significant loss if you are under-insured.

Having one or a small number of items slip through your safety net and cause damage to one person may see a small claim made. Imagine, however, the implications of a large batch of faulty items being released. The result may be a class action lawsuit where a number of people band together to make claims, sharing their legal costs. Newspaper articles on such class actions often grab headlines, resulting in widespread negative media exposure for the business concerned.

Ensure your business does all it can to eliminate any possibility of a breach in safety standards. Businesses found to be aware of product faults that do not take action to correct them could face legal action. Warranties on products should carry appropriate warnings on acceptable use. While your Florida general liability insurance is in place to help protect you from the financial loss of any claim, ensuring you do all you can to avoid a defective product being released in the first place should be your primary strategy.


Disclaimer: The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.

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