PRODUCT LIABILITY EVALUATION
ICC INSPECTS YOUR PRODUCT FOR
SAFETY AND PROPER LABELING
ARE YOU OSHA COMPLIANT ?
CALL ICC at : 1- 316
NY: 1 845-751-0023
CO: 1 303-539-5334
Washington DC 1 202-386-6193
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.
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.
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
2) Design defects,
3) Defective warnings or
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
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
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
ICC's Evaluation and Certicification focuses on five areas:
1) Consumer expectation,
vs. Strict liability
Failure to warn
Foreseeable Risks of harm
Foreseeable Misuse of the product.
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
a. The usefulness and desirability of the
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
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.
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 or 1 (845)-751-0023
ICC Third Party Administrators ®