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Product Liability Checklist


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Product Liability Checklist Product liability management is an essential part of the risk management process for any organization that treats for its customers and tends to manufacture or sell high-quality and merchantable products. The following Product Liability Checklist describes how to plan for product liability.

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  1. Consider Reasons For Product Recall.
    • Manufacturing Defect. A recall claim can be initiated by your customer if your product has been produced with some portion of unreasonably unsafe defects.
    • Design Defect. A claim can be made if the design of your product is inherently unsafe and may harm your consumers.
    • Defective Warnings or Safety Instructions. In case your product isn’t properly labeled and has insufficient safety information for consumers to understand the hazard potential, a recall claim can be initiated against your company.
  2. Ensure Product Safety.
    • Warn customers about potential risks (if any).
    • Be sure consumers have got information (safety precautions) so they understand the risks.
    • Be sure consumers know adequate warnings and safety instructions about misuse.
    • Monitor safety of your product regularly (e.g.: by conducting product testing and investigating complaints).
    • Take immediate actions in case a safety problem is found.
    • Recover and recycle product packaging.
    • Provide consumers with safe disposal guidelines describing what to do with the product at the end of its life (especially if you offer electronic equipment and chemical goods).
    • Have a good quality control system within your company to monitor product safety and performance.
    • Make sure your supply/delivery agreement clearly specifies liabilities and requirements for product safety, quality and recall.
  3. Prevent Product Loss.
    • Be sure your product has a thoughtful and appropriate design that fits with the product’s features and functions.
    • Conduct thorough testing of the product before it hits shelves.
    • Make a realistic evaluation of the hazard potential.
    • Provide your product with necessary instructions for use.
    • Check if your product has essential marking and identification information (like labels, warnings, prescriptions, manufacturer's/retailer’s identity, and other on–product messages).
    • Make sure there’s a good shipping package for transporting the product.
    • Examine the display package and ensure it fits with the product design.
    • Contact with your insurance agent to negotiate details of a product liability policy, so that the insurer is liable to cover the following things:
      • Product guarantees
      • Product recalls made by consumers
      • Product tampering
      • Profit protection
  4. Plan for a Recall Process.
    • Appoint a recall coordinator who will manage the product recall process.
    • Keep records on your product’s life-cycle.
    • Use serialization or marking (individually or by batch) as a convenient way to track the life-cycle.
    • Plan for a complaint management process that may include such general steps as:
      • Gather customer feedback
      • Analyze the data to detect early claims
      • Respond to claims
      • Minimize the impact of a recall
      • Constantly evaluate consumer complaints, warranty claims, inspection records, ...

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