Understanding the Most Common Types of Product Liability Insurance Claims

Defective products of all sorts cause thousands of injuries every single year. We can’t go months without hearing about some sort of recall including airbags in cars, toys for kids or certain packaged foods. Too many products contain hazardous defects that are sold to the American public and end up causing someone some sort of physical pain.

For companies who make these products, there’s a form of insurance that can help protect against costly claims and high legal fees called product liability insurance. This kind of coverage is specifically designed to protect companies in the wake of a defective product claim. Here are some of the main examples of those claims.

Defectively Manufactured Products

Injury-causing products are perhaps the most obvious kind of defectively manufactured products. This is something that is flawed because there was a mistake that occurred when it was made, like an issue with fabrication. The result turns out to be an injury to someone who uses the product.

Examples can include tainted food, poorly manufactured brake pads in cars, or toys that have removable pieces that kids can choke on. And now, with the advent of self-driving cars, insurance companies are bracing themselves for more product liability claims. Whatever the case may be, the injury has to be due to the product being defective in some way.

Inadequate Warning Labels

Another type of product liability claim that’s common is one that involves a failure to provide the right instructions or warnings about their product’s use. Failure-to-warn claims usually involve a product that is harmful in some way that’s not too apparent to the user. Such examples include medicines, paint with certain kinds of chemicals, and electronics.

Again, the injury sustained has to be because of the product itself, not just due to user error or misuse.

Defectively Designed Products

A product’s design can turn out to be inherently dangerous in the first place. This is known as a defectively designed product that ends in claims that do not arise from user error or mishap in manufacturing. Instead, these claims involve that an entire line of products is harmful, even though the manufacturer says they’ve all been made to specifications.

Examples of this usually fall under particular models of cars, like self-driving cars mentioned above, electric blankets that end up catching fire, or bikes that end up falling apart.

About Genesee General

At Genesee, we strive to provide quality insurance solutions for the Commercial E & S sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized products include coverages for Transportation, Garage, P & C, Professional, Brokerage Property, Specialty Programs and many more. For more information about our products, we invite you to contact us today at (800) 282-8755.