Liabilities And Liability Insurance: Avoiding Incidents So You Do Not Have To File Claims

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Liability insurance in the U.K. is not all that different than in other countries. Companies owe it to their retail partners and consumers to produce good products that will not harm anyone. When your company produces many different products, you need to protect your company just as you protect the consumers and retailers by avoiding manufacturing products that will cause harm. First and foremost, have liability insurance. Then avoid the following so that you never have to file a claim against your liability insurance.

Poor Quality Control Measures

Your inspectors need to check every single batch of merchandise that leaves the factory. Hold them accountable. They need to log every inspection on every batch or product every day. Doing so reduces the number of faulty products that leave the plant. It also means fewer liability lawsuits when consumers encounter faulty product because there will not be that many faulty products reaching markets. Your quality control inspectors should only be allowed to make mistakes on two batches of product per quarter (and even that is generous). If you avoid mistakes right at the factory level, you can rule out your company's responsibility in a liability suit.

Damaged Product in Shipping

Sometimes you can do amazing things with shipping all of the perfect products from the factory, only to find that they have not reached the retailers in the best of conditions. This becomes a problem for the retailers, who now do not have enough product to sell, and may end up selling product that is not as good as intended. That usually results in a liability lawsuit against the store as well as against your company. If you have continued issues with the shipping company, fire them and hire a different shipping company that can deliver most or all of your products in excellent shape to the stores.

​Products That Have Legitimate Issues

​Finally, there is one final issue that you may not be able to avoid, and you will be glad that you have liability insurance to cover it. This issue involves accidental ingredients in products. For example, toxins that have accidentally fallen into a vat of ale, or lead paint that was added to the automated spray painters at the end of the production line of toys for children. Your quality control inspectors would not catch this on sight, nor would they catch it any other way. It is only through one or two reports to your customer service department that would catch a potential batch problem. Recalling the entire batch immediately prevents any further liability issues.