What is the definition of Product Liability?
Product Liability refers to who is responsible and who gets sued for damages for injury caused by a defective product. The manufacturer of the product is usually the one who holds product liability. Any injured party can sue the manufacturer for damages without the need to prove its fault or negligence.
In some cases, suppliers, retailers and distributors are also held responsible for the injuries. They have the responsibility to produce and market safe products and will be held liable for their failure to do so.
There are basically three major types of claims when it comes to product liability. These claims mostly stem from a design defect, a manufacturing defect and a failure to warn. A design defect means that the design is inherently dangerous and defective. A manufacturing defect is a failure to produce the product properly due to shoddy workmanship or the use of poor-quality materials. Failure to warn refers to adequate warnings placed on the label to avoid any danger with the product.
| Not a bit | Very useful |
- Product Liability Insurance
- Professional Liability Insurance
- Proof of Loss
- Property/Casualty Insurance
- Property/Casualty Insurance Cycle
- Proposition 103
- Purchasing Group
- Pure Endowment
- Pure Life Annuity
- Rate
- Private Placement
- Private Mortgage Insurance
- Prior Approval States
- Prime Rate
- Primary Market
- Primary Company
- Primary Beneficiary
- Premiums Written
- Premiums in Force
- Premium Tax