When a defective product causes harm, any party involved in its chain of distribution can be held legally accountable. Typically, liability falls on the product manufacturer or the retailer.
Product liability law is founded on a simple principle: consumers have a fundamental right to safe products. If you are injured by a defective item, you may be entitled to financial compensation for medical bills, lost income, and pain and suffering.
Three Legal Theories of Product Liability
There are three primary legal grounds for a product liability claim.
- Negligence
A negligence claim argues that a manufacturer or distributor failed to act with reasonable care to ensure the product was safe. To prove negligence, you must show:
- The manufacturer owed a duty to produce a safe product.
- They breached that duty through their actions or inaction.
- This breach directly caused your injury and resulted in damage.
The higher the potential danger of a product, the greater the duty of care required by the manufacturer. For high-risk industries like cannabis, it becomes even more important for the manufacturer to do their due diligence.
- Breach of Warranty
Manufacturers provide assurances about their products through express or implied warranties.
- Express Warranties are specific promises found in manuals, advertising, or sales pitches.
- Implied Warranties are unspoken guarantees that a product is fit for its intended use.
If the product fails to live up to these promises, the warranty is considered breached, creating grounds for a claim.
- Strict Liability
Strict liability is a powerful legal theory for victims. It holds a manufacturer liable for injuries caused by a defective product, regardless of whether they were negligent. To succeed with a strict liability claim, you must prove:
- The product was defective.
- The defect existed when it left the manufacturer’s control.
- The defect caused your injury while you were using the product as intended.
The Three Categories of Product Defects
Product liability cases generally fall into one of three defect categories.
Manufacturing Defect
This occurs when an error happens during the assembly or production of a single item, making it different and more dangerous than the intended design.
- Example: A bicycle helmet is assembled with a faulty strap buckle that breaks during a minor fall, leading to a head injury.
Design Defect
This refers to a fundamental flaw in the product’s blueprint. The entire product line is inherently dangerous, even if every unit is manufactured perfectly.
- Example: A model of hair straighteners is designed with faulty wiring that overheats, creating a fire hazard in every unit sold.
Marketing Defect (Failure to Warn)
Manufacturers have a duty to provide clear warnings about a product’s potential risks and proper instructions for safe use. A marketing defect occurs when:
- Hazards are not adequately warned against.
- Instructions are insufficient to prevent misuse.
- A newly discovered hazard is not communicated to consumers after the product has been sold.
Protect Your Business from Costly Claims
When a product causes injury, the legal repercussions can ripple throughout the entire supply chain. Lawsuits are often lengthy, complex, and expensive. Even unfounded claims must be defended, costing your business money and damaging its hard-earned reputation.
The best strategy is proactive protection. Securing the right insurance is a critical step in safeguarding your company’s future.
Do not wait for a lawsuit to threaten your business. Contact ONYX Insurance Brokers today to discuss comprehensive product liability insurance solutions tailored to your needs.
