Product liability claims are based on state laws and brought under theories of negligence, strict liability, or breach of warranty. Each state governs product liability claims, and there is no federal law regarding product liability.
Proving a Product Liability Case
To prove a product liability case, a plaintiff must demonstrate:
- The product was defective and dangerous.
- The defect existed when the product left the manufacturer.
- The defect caused the plaintiff’s injury.
- The injury resulted in specific damages.
Legal Theories in Product Liability Cases
Common legal theories in product liability cases include:
- Negligence
- Strict liability
- Breach of warranty
- Misrepresentation
Product Liability Insurance
Product liability insurance protects against claims and lawsuits related to defective products. Policies cover legal costs, claim payouts, bodily injury, property damage, and punitive damages. Insurers typically prefer "claims-made" policies over "occurrence" policies.
Considerations for Businesses
Businesses involved in manufacturing, distributing, or selling products should consider product liability insurance. It safeguards against major lawsuits that could lead to financial hardships or bankruptcy. The cost of insurance varies based on factors like product risk and safety measures, providing peace of mind.