MI Manufacturers Insurance: Reducing Product Liability 

Michigan manufacturers have a responsibility to ensure their products are safe for consumers and end users. From design through distribution there are countless risks that manufacturers encounter that can impact their liability exposures and increase the chances of facing claims regarding a product. A product liability claim can be a big setback for any operation, resulting in costly recalls, legal battles, fines, fees and more. Taking the right steps from the very start of production can help reduce your Michigan manufacturer’s liability risk exposures and help prevent product liability claims before they even happen.

Here are a few tips from risk management and industry experts:

• Product Design: The first place that manufacturers can limit their product liability exposures is in the design process. Design flaws are some of the most common and most costly product flaws as they can result in recalls, injuries, litigation and more. Just because something works on paper does not mean that it will function fully as expected in reality, as such safety and product testing is one of the best ways to uncover any kinks or flaws in the design process or the product itself. Safety reviews should take into account how a product will be used and what kind of hazards might arise from its use. Reviews should also be performed to confirm that products still comply with the latest safety standards.
• Review Your Imports and Materials: Manufactures can be held responsible for the materials and goods used to make, manufacture and assemble their products. As such, Michigan manufacturers often bear the sole responsibility of ensuring that all materials and imported parts, goods and pieces are safe and meet industry standards and government regulations here in the U.S. It is often the manufacturer’s responsibility to confirm the proper safety warnings, labels, and instructions are provided on all products for the end user, or at least supply the packaging operation with such information.
• Set up a risk transfer program. Risk transfer programs can help businesses avoid financial and liability exposures due to liabilities caused or contributed to by others. Through risk transfer programs, manufacturers can set out specific responsibility and liability obligations to themselves in writing while also assigning certain obligations to others. Having these decisions legally predetermined in writing at the beginning of a business relationship can help save time and money on litigation.

When establishing any Michigan manufacturing operation, it is important to make careful decisions and evaluate the risk exposures which can accompany and new enterprise. At Capital Insurance, we specialize in helping Michigan manufacturers mitigate the wide variety of unique risk exposures these operations commonly face. We help operations of all types and sizes find comprehensive MI manufacturers insurance programs and risk management solutions to meet their unique needs. Our complete Michigan business insurance portfolio includes essential and extended policies customizable to fit the needs of your operation. Give our specialists a call at (877) 755-3767 to learn more about our comprehensive MI manufacturers insurance and other offerings today.