Learn how to lower your risk for product liability lawsuits.
When it comes to your business, it’s important that you keep it safe. You’ve worked hard to build up your company, and you want to see it succeed. However, all it takes is one lawsuit to destroy your business. Ensure that you have enough business insurance to protect your company from any liability suits, and ensure that you lessen your risk for product liability with these tips.
Get Everything in Writing.
It can be hard to prove that you had no responsibility for a defective or faulty product. Ensure that you save documents in writing that clearly say that you had any part in the product liability claim. Keep records from clients that had approved designs, and maintain a database of written procedures and practices. When you have a written record of policies, procedures, and client feedback, you’re better able to demonstrate that you’re not liable for a faulty product.
Encourage Feedback.
When you get feedback, you’re able to learn what works and what doesn’t. That way you can improve upon the bad to make it better and maybe even safer. Collecting such information can help you fix a problem before it gets out of hand. It helps to avoid issues like negligence, property damage, and business interruptions.
Supplier Responsibility.
If your business uses materials from a supplier, ensure that you transfer the liability over to them at the beginning of your business relationship. Otherwise, you may be held accountable for liabilities that had nothing to do with your negligence. Before hiring a supplier, review product liability law with a lawyer. They can help you draft a contract that helps to protect you. Hold harmless agreements and statements of financial responsibility are examples of contract that help to transfer risk.
Keep your business safe from liability suits with the right commercial liability insurance. The professionals at Phocus Insurance can find you the best policies for your needs. Located in Phoenix, Arizona we serve all your personal and commercial insurance needs. Contact us for more information.
