Examples of Product Liability Insurance Claims in Various Industries

Consumers face many dangers from the products they use. Airbag inflators, herbicides, and prescription drugs are just a few products that have made headlines in recent years for injuring or killing some of the people who purchased them.

There are many examples of product liability involving consumer products, ranging from household items to industrial goods. Claims can arise from a wide range of consumer products, including furniture, pharmaceuticals, medical devices, food, and automotive parts. High-profile examples include IKEA being ordered to pay a $46 million settlement after a dresser caused a toddler’s suffocation, Monsanto facing over 100,000 lawsuits related to Roundup weed killer, Philips agreeing to a $1.1 billion settlement over faulty CPAP machines, and 3M paying out to over 249,000 veterans for defective earplugs. Other notable cases include the Ford Pinto’s fatal design defect, Johnson & Johnson’s talcum powder lawsuits, and the McDonald’s coffee case where a woman suffered third-degree burns and was awarded $3 million in damages. These cases illustrate the tremendous amount of risk businesses face when their products cause bodily injury or property damage.

Product liability claims are intended to compensate consumers for injuries arising from defective products. Product liability insurance claims arise when a product causes bodily injury or property damage due to defects in design, manufacturing, or marketing. Insurance is key when your business is threatened with a product liability lawsuit. Product liability coverage is essential for protecting your business’s financial resources, personal assets, and the tremendous amount of time and money a business takes to operate. General liability insurance should be a given for any small business, as it helps safeguard both business and personal assets from the risks associated with product liability claims. Here’s what to know.

What Makes a Product Defective?

Product liability law allows injured consumers to pursue legal claims against the business entities responsible for their injuries. The law of product liability is derived from both tort law and contract law, and many states have enacted specific product liability statutes.

In early cases, judges found that consumers could invoke contract law and negligence to pursue compensation for injuries suffered resulting from product use. Thus, a product could be defective if it breached its express warranty, implied warranty, or the manufacturer failed to exercise reasonable care in making and selling it, leading to warranty claims.

With the rise of mass production, however, judges and legal scholars developed a new theory for holding manufacturers legally responsible for injuries their products cause. Under the principle of strict liability, an injured party must only prove that a product was defective and that the defect caused their injuries suffered. Strict liability allows the injured party to recover damages without proving negligence, only that the product was defective and caused their injury. The injured party can seek compensation for medical expenses, lost wages, and pain and suffering, and may be awarded punitive damages if the defendant's actions were particularly reckless or intentional. The statute of limitations for filing product liability claims is typically two years from the time the injury occurred or was discovered.

Product defects fall into three major categories: design defects, manufacturing defects, and marketing defects (often referred to as failure to warn). Design defects occur when a particular product's fundamental blueprint is unreasonably dangerous, making the entire product line flawed. Manufacturing defects happen during the production process, resulting in a specific batch or unit being dangerous even if the design is safe. Marketing defects involve a failure to provide adequate warnings or instructions, such as missing or inadequate warning labels. Examples of defective designs that can lead to liability include rollover-prone vehicles, choking hazards in children's toys, and unstable furniture. Common defects also include contaminated food products, faulty automotive parts, and pharmaceutical contamination during production.

Determining whether a product is defective often involves considering what an ordinary consumer would reasonably expect regarding product safety, whether the product met industry standards, if it was used as intended (intended use), and the specific characteristics of the particular product. Plaintiffs claimed and plaintiffs alleged in class action lawsuits that product defects, such as failure to warn or defective design, directly caused the plaintiff's injuries. Legal responsibility is established when a manufacturer or seller is held legally responsible for the injuries suffered by the injured party due to a product defect.

Product safety is critical, especially for household products and safety equipment, where potential risks must be clearly communicated through proper warning labels. Tracking the finished product through the supply chain is essential to monitor its location, manage inventory, and prevent potential recalls.

Importantly, a product liability lawyer doesn’t need to prove that the manufacturer knew about the defect — manufacturers are liable for defects even if they didn’t intend for a product to contain them.

Types of Product Liability

Product liability claims generally fall into three main categories: design defects, manufacturing defects, and marketing defects. Recognizing these distinctions is crucial for both consumers seeking compensation and businesses aiming to minimize their exposure to product liability lawsuits, particularly under Ohio product liability law.

Design defects occur when a product is inherently unsafe due to its original blueprint or intended design, even if it is manufactured perfectly. In these cases, the entire line of products poses a risk to consumers because the flaw is built into the product from the start. For example, a car model with a high rollover risk due to its design could lead to numerous liability lawsuits if injuries result from this defect.

Manufacturing defects arise during the production process, when a product deviates from its intended design and becomes unreasonably dangerous. These defects might affect only a batch or a single unit, such as a batch of medication contaminated during packaging or a bicycle with a cracked frame due to a factory error. When injuries occur because of these flaws, product liability claims can be filed against the manufacturer or other responsible parties in the supply chain.

Marketing defects—also known as “failure to warn” or “inadequate instructions”—involve problems with how a product is presented to consumers. This includes insufficient safety warnings, unclear instructions, or misleading marketing materials that fail to alert users to potential hazards. For instance, if a household cleaner does not warn consumers about the risk of toxic fumes when mixed with other chemicals, the manufacturer could face product liability lawsuits if injuries result.

Understanding these three categories helps clarify how product liability law works and why it’s important for businesses to have robust product liability insurance and for injured parties to consult a product liability attorney. Whether the issue stems from a design flaw, a mistake in the manufacturing process, or a lack of proper warnings, victims have the right to pursue compensation through product liability claims.

Industries With the Most Product Liability Claims

The same laws and procedures apply to all product liability claims regardless of industry. However, product liability claims fall into different categories depending on the industry and product type, which is important for developing effective legal strategies. Some products occasion more claims and lawsuits than others. Product recall insurance pays for expenses related to recalling defective products, making it a crucial protection for businesses. A program manager at an insurance company often oversees product safety and insurance policies, helping clients understand risks and manage claims effectively. Performing detailed product testing and quality assurance can help minimize product liability risks, while regularly inspecting and cleaning manufacturing equipment reduces the chance of defects. Tracking retail status can help avoid or minimize product recalls at the consumer level. Including and double-checking product labels and disclaimers helps limit liability and ensures customers understand safe product use. Keeping detailed records of materials and customer information, as well as using clear and accurate photos and descriptions, can prevent misinterpretation and support your case if a claim arises.

The following industries are the subjects of the most product liability claims:

Automobiles

Vehicles are complex machines integrating mechanical, electrical, and software systems. As such, a manufacturer could face thousands of claims from a single defect.

The largest automotive recall ever conducted involved defective airbag inflators. The propellants used to inflate certain airbags could degrade over time and trigger an explosive deployment. These faulty airbags caused 27 deaths and more than 400 injuries in the U.S. General Motors was among the automakers involved in the massive Takata airbag recall, which highlighted the critical role of safety equipment in preventing severe injury. Defective airbags can cause severe injury or wrongful death, underscoring the importance of proper safety equipment and quality manufacturing processes in vehicles.

Pharmaceutical and Medical Devices

Pharmaceutical and medical device manufacturers must take extra caution when producing their products because they’re typically used inside the body over a long period. When these products contain toxic substances, wear out, or produce unintended side effects, manufacturers can face tens of thousands of product liability claims. Injured consumers can claim reimbursement for medical bills resulting from defective medical devices.

Manufacturers are legally required to provide clear warning labels and inform consumers about the potential risks associated with medical devices and pharmaceuticals. Failure to include proper warnings can result in significant liability.

For example, silicone breast implants sparked one of the largest product liability lawsuits in history. Health issues stemming from these products led to over 20,000 lawsuits and a class action settlement of over $4 billion. Baby formula is another example of a product that has led to product liability lawsuits due to insufficient warnings or dangerous effects, illustrating how defective medical devices can cause harm in many different ways.

Consumer Electronics and Appliances

The consumer electronics industry faces two pressures that can lead to a high volume of product liability cases.

First, companies must rush development to be the first to market. Second, many use overseas factories with lower safety standards. As a result, products can reach millions of consumers without undergoing a rigorous safety review.

A prime example of the issues characteristic of consumer electronics involves lithium-ion batteries. These devices can overheat, triggering explosions or fires that can injure or kill consumers. Product liability claims can also arise from property damage, such as fires or explosions caused by defective electronics. Product safety is a critical concern in this industry, and failure to address safety issues has led to class action lawsuits against electronics manufacturers for widespread defects, resulting in recalls and significant legal consequences.

Children's Toys and Products

Children’s toys and products are often involved in product liability claims because of their users.

Infants and toddlers are prone to choking. They’re also less able to withstand injuries or rescue themselves when, for example, they get stuck in certain structures or get tangled in bedding. Additionally, children’s toys can be misused despite the warnings and instructions provided to parents. Household products and toys must be designed for their intended use and include proper warning labels to prevent injuries.

When manufacturers fail to anticipate mishaps involving their products, they can be held liable for the resulting injuries.

Industrial and Construction Equipment

Tools and heavy equipment can be plagued by many of the same issues as vehicles, and a single defect could affect hundreds of workers and bystanders. For example, a crane collapse could cause millions of dollars in damage and injure or kill dozens of people.

Product liability claims can arise from bodily injury or injuries suffered by workers due to defective industrial equipment. These machines must stand up to rigorous use (and occasional misuse). When they malfunction, victims and their families can pursue product liability claims against the manufacturers, making it critical to understand how courts determine liability for defective products.

Who Can Be Held Liable in a Product Liability Case?

One notable drawback of contract or negligence laws in product liability cases was the requirement to prove which party in the supply chain was liable. This limitation doesn’t apply to strict liability cases.

In a strict liability claim, the injury victim can pursue a claim against any party in the supply chain, from the manufacturer to the retailer. Those parties can then sort out liability between them. Under strict liability, a party can be held legally responsible for damages caused by a defective product, even if there was no intent or negligence. Establishing legal responsibility involves proving that the defect directly caused the injury and that no other factors or improper handling after production were responsible, which is a key feature of defective product law in Ohio.

Product liability insurance can help cover attorney fees and other legal costs associated with defending against product liability claims, providing important financial protection for businesses facing lawsuits and the individuals they injure, who may need help from experienced Cincinnati personal injury attorneys.

How a Lawyer Can Help if You've Been Harmed by a Defective Product

Product liability attorneys understand the formal procedures for pursuing legal claims. They have the resources to stand up to billion-dollar multinational corporations like auto manufacturers and pharmaceutical companies.

Many product liability attorneys offer a free consultation to evaluate your case and discuss your options, making it easier to get started without financial risk. Damages in product liability cases can include compensation for lost wages and emotional distress, in addition to medical expenses, reflecting the full impact of injuries caused by defective products. This is especially true when you need to sue for defective medical devices, which often involve complex injuries and long-term treatment.

Reputable lawyers also have access to expert witnesses who can analyze products, identify defects, and testify in court. For insurance advice and risk management, working with a prestigious Certified Insurance Counselor can provide valuable expertise to ensure you have the right coverage. These experts frequently provide key testimony for winning product liability cases.

FAQ

Can I File a Product Liability Case if I Wasn't Injured?

Product liability only applies to injuries or deaths. If you avoided injuries and want a refund, you’ll need to follow a different process, such as a warranty claim. Warranty claims can be based on an express warranty—a specific promise or statement made by the seller or manufacturer about the product’s quality or performance—or an implied warranty, which is an automatic legal guarantee that the product will meet certain minimum standards, such as being fit for its intended purpose. Unlike product liability claims, which address harm caused by defective products, warranty claims focus on whether the product meets the promised standards, even if no injury occurred.

What Happens When a Product Kills Someone?

Product manufacturers can be held liable for fatal injuries in wrongful death cases. In Ohio, these claims must be brought by the representative of the deceased’s estate. In some wrongful death product liability cases, courts may also award punitive damages if the defendant's conduct was especially reckless or intentional, serving to punish and deter such egregious behavior.

Is a Product Liability Case the Same as a Class Action Lawsuit?

A class action lawsuit allows multiple victims to file a lawsuit together. In product liability cases, class action lawsuits are often used when plaintiffs claimed or plaintiffs alleged similar injuries or damages resulting from the same defective product. While many product liability cases are class actions, this arrangement can be used for other cases as well.

Contact The Moore Law Firm to Discuss Your Product Liability Claim

Victims deserve compensation for injuries caused by defective products, no matter who produced them. Contact us today to learn how we can help you stand up to companies and pursue fair compensation.