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Legal Framework for Product Liability Claims At the core of product liability claims are three legal theories: negligence, strict liability, and breach of warranty. Negligence requires proving that the manufacturer failed to exercise reasonable care in the production or design of the product.

Product liability refers to the legal liability of manufacturers or sellers to compensate buyers, users and even bystanders for damages or injuries suffered because of defects in goods purchased.

Example: A power tool manufacturer fails to include proper safety warnings in its product instructions, and as a result, a user suffers severe injuries. In this scenario, the injured party may file a product liability claim based on a marketing defect.

Product liability insurance helps protect your business from claims that a product you made or sold caused bodily injury or property damage to someone else's belongings. An insurance company may offer this coverage as a standalone policy, but we include it as part of your general liability insurance.

For strict liability to apply, the victim must use the product in a foreseeable way. The product defect must cause the victim's injuries. You don't have to be able to prove how the defect occurred. All you have to show is that a defect caused your injuries.

California's Strict Liability Rule In California, the strict liability rule plays a pivotal role in product liability cases. This rule states that manufacturers, distributors, and retailers can be held liable if their product is found to be defective, regardless of whether they were negligent or not.

Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product. You can be held liable for faulty products even if you did not manufacture them. You may be liable for compensation if: your business's name is on the product.

Under strict liability theories, the focus is on the product itself and not the manufacturing process. The manufacturer is strictly liable for a dangerous product even if the manufacturer was not negligent in the manner in which it made the product.

Legal bases for product liability law. The law of product liability is derived from both tort law and contract law. In addition, many state legislatures have enacted product liability statutes that define the scope of products liability within the state. Currently, there is no uniform federal products liability law.