The Rising Tide of Product Liability
The Rising Tide of Product Liability
September 27th, 2024 by Jerry Conrey and Kyle Langan
What Manufacturers Need to Know:
Are U.S. manufacturers playing in a high-stakes game? Recent statistics show that product liability verdicts have skyrocketed by 50% over the past decade, with a staggering median verdict of $36 million in 2022. [1] As a manufacturer or merchant, understanding product liability is crucial to safeguarding your business and reputation.
What is Product Liability?
Product liability refers to the legal responsibility that manufacturers and merchants face due to bodily injury or property damage caused by their products. [2] Many companies turn to casualty insurance to mitigate financial losses proactively.
The Importance of Proactive Risk Management Strategy
For manufacturers, addressing product liability requires a strategic approach. The strategies must carefully manage operational risks, including product liability and recalls, to prevent costly repercussions. A well-structured product recall plan, and a proactive risk management team, can make the difference in preparing your company for unforeseen challenges.
Take Control of Your Risk Mitigation
As a manufacturer, how you respond to claims can either worsen the situation or pave the way for recovery. Tactical reactions often leads to hasty decisions, but with the right preparation, your company can navigate these challenges effectively and strategically.
- Assess Your Risk: Analyze your distribution data and loss frequencies to understand potential vulnerabilities.
- Develop a Response Plan: Prepare your management team to issue apologies, consider product recalls, or take corrective actions as needed.
Let Us Help You Navigate the Complexities
The landscape of product liability is dynamic, and having a dedicated risk management team can help you stay ahead of the curve. If you are feeling overwhelmed or uncertain about your current risk management strategies, do not hesitate to reach out. Our team of professionals is here to assist you in developing a robust plan tailored to your specific needs.
Contact us today to discuss how we can help you mitigate risks in the product liability domain. Together, we can prepare your company for whatever challenges may arise. Do not leave your future to chance—take action now!
References
Silverman, C., & Appel, C. E. (2024, May 30). Nuclear verdicts: An update on trends, causes, and solutions. ILR. https://instituteforlegalreform.com/research/nuclear-verdicts-an-update-on-trends-causes-and-solutions/
Product liability. IRMI. (n.d.-b). https://www.irmi.com/term/insurance-definitions/product-liability