Professional Liability: Proving Product Design Defects

Posted on: July 23, 2015 by Huntersure

Many professionals are associated with the design, creation, and distribution of products, which creates plenty of risk exposures along the way. While the product design component is dynamic, there are a few key considerations to keep in mind when analyzing Product Design Liability hazards.

First, it is necessary to define product design defects. According to Find Law, a company’s liability for a design defect occurs when there is a foreseeable risk posed by the product when the product was manufactured as intended and used for its intended purposes. In order for a plaintiff to prove your clients are liable for damages, they need to also demonstrate an alternative design could have diminished the issue that was:

• Able to be produced by the manufacturer
• Possible to produce within budget
• Used for the same purpose as originally intended

These components must be evaluated by courts and internal compliance departments to complete a cost-benefit analysis. During this process, the additional cost that would be incurred to create a safer alternative is compared against the potential damages that might occur if the design isn’t updated.

If these modifications are not made, a negligence claim can ensue. In other words, if the manufacturer of the product design was made aware of the risks involved and did not attempt to correct them, the plaintiff can sue. Although profit margins might be affected, it is critical for your clients to assess the safety and effectiveness of their product and make any necessary adjustments.

Lastly, some jurisdictions employ a process called the “consumer expectations test” which identifies if the threat of the product exceeds the consumer’s expectations. However, this standard is difficult to prove as it is widely subjective.

At Huntersure, we are experts in professional liability coverage and the processes used to identify accountability. We aim to protect each component of your clients’ business with competitive pricing and quality solutions. For more information on our products and services, contact us today at (855) 585-6255.

Posted in: blog Professional Liability

Tagged: Product Design Defect Professional Liability Insurance