Even the best technical designs and safety practices are useless if the humans that operate them fail to use them properly. Nearly 3.5 million cars across America, including in West Virginia, have recently been recalled for airbag testing due to problems associated with human error. Luckily, the companies involved in the recall all carry general liability insurance to pay for the cost of such recalls and the defense of any claims arising as a result. A West Virginia general liability defense practice law firm can help you with a product recall or litigation.
It is believed that the airbag problem occurred because an employee failed to turn on a quality control system in the manufacture of the airbags. The airbags, which were all manufactured by the same supplier and then sold to different carmakers, were also allegedly stored under the wrong conditions. The potential defect itself is actually minor and no major injuries are believed to have resulted from the problem. However, the potential negative publicity that the news of a defect generates, and the way in which the company deals with that event, can have a significant effect on the company’s reputation, brand and profitability.
Manufacturers facing a products liability issue should consider:
- Brand damage control ― An early admission of the problem may be better than facing a claim from an injured or disgruntled customer.
- Offering compensation to affected customers ― You may be able to avoid a costly claim by placating customers.
- Checking their insurance ― You should review your policies to determine if your general liability insurance covers you for the steps that you plan to take.
- Identifying the source of the defect ― You may be able to recoup lost sales and other costs from the source of the defect.
Pullin, Fowler, Flanagan, Brown & Poe is general liability insurance defense attorneys based in West Virginia. Our general liability litigation attorneys in Ohio can advise you on the best way to handle a product recall or damage limitation exercise. Contact us at any of our four offices across West Virginia.