Operating a business comes with many legal and financial risks. A single mistake or poor decision could drain your business accounts or even land you in legal trouble.
For example, if a consumer suffers harm from items your company manufactured or sold, they may pursue a product liability claim targeting your business. If you lose, the economic losses you experience could devastate your operations.
Tips for avoiding product liability claims
Of course, the best product liability defense is preventing claims from arising. Manufacturing and retail companies can avoid claims by ensuring that their products are safe for consumer use.
Manufacturers can accomplish this by ensuring that every item that leaves the warehouse has been tested and retested. Retailers can meet this goal by inspecting products for safety before placing them on their shelves. Other tips for retailers and manufacturers include the following:
- Keep safety your top priority
- Purchase product liability insurance
- Create contracts preventing others from altering products
Having a defense professional on standby to help you navigate potential legal risks is also wise.
Possible defenses against product liability claims
Not all liability claims spell disaster for businesses and companies. Contrary to popular belief, it is possible to emerge successfully from such a claim. Defenses to consider include:
- No product defects actually exist
- Item was altered or modified negligently
- Consumer misuse or negligence caused the injury
- Plaintiff is unable to connect their injury to your product
The main takeaway is that you always have defense options when litigation impacts your business operations. With a firm grasp of state law, you can improve your odds of winning a commercial litigation claim in California.