PRODUCT LIABILITY EVALUATION
ICC INSPECTS YOUR PRODUCT FOR SAFETY AND PROPER LABELING
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CALL ICC at : 1- 316 683-0170
BEFORE YOU PLACE YOUR PRODUCT IN THE MAINSTREAM OF COMMERCE OR LOOK FOR INSURANCE
CALL Insurance Claims Consultants (ICC) FOR A PRODUCT EVALUATION AND CERTIFICATION. OUR REPORTS MAY HELP REDUCE YOUR INSURANCE PREMIUMS.
Product liability is one of the fastest growing exposures that manufacturers and retailers are facing in today's market and causing the cost of making consumer products more expensive to make due to excessive litigation, state and Federal law requirements.
As Insurance professionals, ICC has seen claims that could have been avoided if the manufacturer or business had proper warnings on their product. As a result, Insurance Companies have paid out huge amounts to indemnify the damaged party. This is passed on to the manufacturer in terms of higher premiums, more exclusions in a policy, which does not adequately protect the manufacturers or retail merchants.
Often times, the manufacturer self-insured their products because they cannot find an insurance carrier to insure their product that is placed in the mainstream of Commerce.
ICC provides Administrative claims services to companies who self- insure their product. If you cannot find a insurance company willing to take on the risk, Consider the self- insured approach with ICC.
Litigating product liability claims are also on the rise and are causing manufacturers/ retailers to pay higher insurance premiums to make and market their products.
Higher premiums directly affect companies profits and investments where the savings in a reduction in premiums could be used to promote companies products and services.
Self- insured companies save on premiums but are still prey for litigants who may believe their products are unsafe for consumer use.
There are generally three types of products defects a company is faced within today's markets:
1) Manufacturing or Production flaws,
2) Design defects,
3) Defective warnings or instructions.
Manufacturers are not the only ones subject to product liability exposure, retailers are often brought into a lawsuit for alleged negligence by the consumer . . .
RETAILERS HELD LIABLE FOR NEGLIGENCE
The age and intelligence of the buyer will have some influence upon whether there is a duty to warn. If a retailer is aware or has reason to know that, because of intelligence, the buyer is not aware of the danger of the product and the retailer has such knowledge, the retailer is required to warn the consumer of the danger.
FAILURES TO PROPERLY ASSEMBLE OR INSTALL THE PRODUCT:
When the retailer or contractor assembles, or both assemble and installs the manufacturer's product, the retailer (or contractor) is under a duty to the purchaser to exercise care in doing so. This would mean that the retailer would have to follow the manufacturer's assembly instructions or installation instructions.
More important, the retailer would be required to test and inspect the product to assure the product is safe in its assembly. Further consideration is established when a manufacturer or assembler markets without adequate warnings. The reseller is subject to liability ,without negligence, in selling the product that lacks the manufacturer's adequate warning.
Thus, those in the market sales chain that are subsequent to a sale by the manufacturer, could be liable, without negligence for the manufacturer's failure to provide adequate warnings.
At ICC, we specialize in product liability and provide a strict, comprehensive program designed to review companies' products. Our programs provide suggestions on how your company can reduce liability exposures which could help reduce your Insurance Premium
ICC's Evaluation and Certicification focuses on five areas:
1) Consumer expectation,
a.Negligence vs. Strict liability
b. Defective design
c. Failure to warn
d. Foreseeable Risks of harm
e. Foreseeable Misuse of the product.
f. Proximate cause vs. forseeability
2) Presumed seller knowledge,
3) Risk-Utility can be understood as essentially the same as risk benefit. The issue is phrased in terms of whether the cost of making a safer product is greater or less than the risk or danger from the product in its present condition. If the cost of making the change is greater than the risk created by not making the change, then the utility or benefit of not making the change is outweighed by the risk and the product in its unchanged condition is defective.
Another way of identifying Risk-Utility is the Risk vs. Cost or burden. That is the risk of danger greater than the cost or burden of eliminating the danger. If it is, the product is defective. If the burden of eliminating the danger is greater than the risk of the danger, then the product's benefit or utility outweighs its danger and therefore the product is not defective.
Understanding of Risk-Utility can greatly benefit a company in understanding the exposure they are faced within manufacturing their product and services. Such considerations to be concerned about are:
a. The usefulness and desirability of the product;
b. The likelihood and probable seriousness of injury from the product;
c. The availability of a substitute product that would meet the same need and be safe;
d. The manufacturer's ability to eliminate the danger without impairing usefulness or making the product too expensive;
e. The user's ability to avoid the danger;
f. The user's anticipated awareness of the danger;
g. The feasibility on the part of the manufacturer of spreading the risk of loss by pricing or insurance.
In most situations, manufacturers are held to the knowledge and skill of that of an expert. The manufacturer's status as experts means that, at a minimum, he must keep abreast of scientific knowledge, discoveries, and advances in his industry.
5 ) Unavoidably unsafe products (such as drugs).
Call ICC today to have your product evaluated and certified. This could save you insurance cost or litigation expense. ICC 1 (316) 683-0170
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