Strict Liability

Strict liability is when a person is made responsible for their products or their action that causes damages and it does not matter at what degree the fault is at in this situation. Fault is not an issue, especially when it is shown that, without a doubt, the actions did cause some sort of damage.

Strict liability usually occurs when a person engages in a risky activity. For instance, a person who decides to keep a lion or tiger within their city home is going to be held liable if their animal causes bodily injury to a person and results in medical expenses or causes property damage. Even if you own a circus and you have used the strongest cages ever made by man, that is not going to matter. You will still be held liable for the damages that have been incurred.

Products

Strict liability also comes into play when it comes to products. You have probably seen in the news before that a number of companies were held liable for injuries caused by a product. When it comes to strict liability, everyone in the chain that handles the product is held liable for that injury. This means the manufacturer, the wholesaler, and even the retailer is held responsible. Now, you may be wondering why the retailer would be held responsible. The truth is that the retailer could have identified a danger. Sometimes, a product may be returned for a defect and returned to the shelf just because reshelving returns is a part of the company's processes.

What is unique is that it is not required that negligence is proven, but it must be proven that an injury occurred because of the product before a lawsuit can ever be brought against all who touched the product.

Usually, defective products are the result of an issue during the manufacturing process. Even the failure to provide detailed instructions with a product can cause an injury if those instructions were necessary to prevent any injuries for occurring. It is said that those who manufacture the product and all of those who handle it may misuse the product, so it is important that instructions are included. The retailer may also have the responsibility of explaining the use of a product to a customer, depending on what the product is.

What it comes down to is that everyone who is involved with the product being put on the sales floor is held liable for it finding its way into the customer's hand and he or she being injured. If liability is determined and the damages must be paid, it is important to have liability insurance that protects you against strict liability.

Liability Insurance

Liability insurance will keep you from having to pay any damages out of your pocket. It doesn't matter at what level you handled the product. Even if you are on the retail end, it is premature to believe that you would not be held responsible in some way, so you want to make sure you don't have to pay for any of those damages out of your pocket. This could hurt your business financially.

So know that there is a risk if you are involved in the process in which a product leaves the manufacture and travels to the sales floor. Even if you own a circus with the strongest cages, you need to make sure you are protected because you never know when something bad might happen in which you are sued. With strict liability insurance, you can make sure that it is the insurance that pays the damages rather than you so that you can go on with your business without damage.

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PROVIDE BUSINESS INFORMATION

Quotes tailored to your business needs


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COMPARE YOUR QUOTES

Quick quotes from multiple carriers


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SELECT & BUY THE RIGHT POLICY

Choose the right policy with a licensed agent

General Liability Insurance

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