Question

Should companies be held strictly liable for their products?

Answer 1

Strict product liability laws favor your customers. In a lot of ways, that makes sense. Consumers usually don't know how the sausage is made, so they require more protection.

Your protection, however, is in your hands. Here are some ways to minimize your product liability risk:

Purchase small business insurance. Many General Liability Insurance policies offer Product Liability coverage, which can pay for legal expenses when you're sued over defective products. Talk to your agent to make sure you have adequate coverage.
Give clear warning labels and instructions. A warning label and instruction manual may not protect your business completely, but they can help support your defense.
Consider liability during the design process. Manufactures can minimize their risk by keeping potential dangers in mind while designing their products. They may also want to take detailed notes on their safety feature choices.
Hire an attorney. A lawyer can help you create hold harmless agreements that ensure your suppliers or contractors are responsible for their own mistakes.
Review customer feedback. Customer reviews may alert you to potential trouble. Even if you think a customer's complaint is the result of misuse, that information may be worth considering for future versions of your product.