| PRODUCT LIABILITY RISKS |
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."
-Aristotle
-Aristotle
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| Copyright, 2005, 2006, 2007, 2008 RiskandSafetyManagement.Com. ALL RIGHTS RESERVED. Materials may be used for non-commercial benefit only. Other uses require Web-Master approval. See LEGAL DISCLAIMER PAGE for details. |
PRODUCT LIABILITY
An effective product safety management program can reduce the potential for accidents and
product recalls, reduce insurance premiums, increase the safety and quality of products, and provide
a more defensible product and company in the event of litigation. We can review a company's product
safety program and help develop recommendations that would enhance the existing controls in order
to achieve the objectives listed above.
Product liability assessments can be conducted through site visits or phone surveys. These
assessments focus on the following areas:
product recalls, reduce insurance premiums, increase the safety and quality of products, and provide
a more defensible product and company in the event of litigation. We can review a company's product
safety program and help develop recommendations that would enhance the existing controls in order
to achieve the objectives listed above.
Product liability assessments can be conducted through site visits or phone surveys. These
assessments focus on the following areas:
- Contracts / Agreements – An investigation of whether the company has sound contracts and
agreements in place to help limit their potential exposure to product liability. These could be
between the company and its' suppliers, dealers, manufacturing reps, service companies, even
with their customers.
- Product Design Reviews – A review of the qualifications of the product design team, the
mandatory or voluntary standards that apply to the product, availability of product certification,
record keeping practices, etc.
- Marketing / Advertising Concerns – A review of product brochures, catalogues, web sites,
promotional videos, and other marketing materials to ensure that these materials do not go too
far in promoting the product by overstating its features, benefits or capabilities.
- Reliability Testing – A review of the extent of prototype testing by in-house staff and external
testing laboratories.
- Warning Labels & Instructions – A review of the existing warning labels to ensure that they
comply with the applicable standards and that they adequately inform the user of the hazard
and the means to avoid it.
- Records Retention Programs – In case of a product liability lawsuit numerous types of records
will be demanded by the court, and within a short time-frame. We review the existing practices
to ensure that important records would be readily available.
- Supplier Selection & Control – A review of the supplier qualification procedures and the
availability of risk transfer mechanisms (hold harmless clauses, additional insured status, proof
of insurance, etc.)
- Warranties – Interviews are held with sales and management personnel to ensure that they are
careful in avoiding any unintended warranties.
- Recall Procedures – A review of the existing recall procedures and product recall history.
- Complaint Handling & Investigation – An effective complaint handling program very often avoids
subsequent claims activity. We review the existing program to determine whether safety related
problems receive the proper attention.
- Quality Control Program – A formal quality control program can reduce the potential for injury
resulting from manufacturing defects as well as provides the necessary documentation to better
defend against a product liability claim. We review the existing program and evaluate whether it
is adequate for the degree of hazard represented by the product.
- Hazard Analysis and Critical Control Points Analysis – For food related industries and medical
devices, we review the existence of a HACCP program and ensure that it is effective in reducing
the potential for the distribution of contaminated or nonconforming products.
| Copyright, 2005, 2006, 2007, 2008 RiskandSafetyManagement.Com. ALL RIGHTS RESERVED. Materials may be used for non-commercial benefit only. Other uses require Web-Master approval. See LEGAL DISCLAIMER PAGE for details. |
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