{"id":5107,"date":"2016-04-04T10:47:54","date_gmt":"2016-04-04T15:47:54","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/liability-and-insurance\/protecting-your-business-from-product-liability-claims.html"},"modified":"2024-05-23T02:27:37","modified_gmt":"2024-05-23T07:27:37","slug":"protecting-your-business-from-product-liability-claims","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/protecting-your-business-from-product-liability-claims.html","title":{"rendered":"Protecting Your Small Business From Product Liability Claims"},"content":{"rendered":"\n
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Protecting Your Small Business From Product Liability Claims<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

As a small business owner, you may believe product liability claims don’t affect you. Your company does not manufacture anything from raw materials. Everything you sell is already tested. Distributors and retailers are safe from product liability claims, right?<\/p>\r\n

Not always. Depending on the nature of the claim, even store owners and retail sellers may have liability in a product claims case. Product liability<\/a> law protects the customer, so everyone in the supply chain, from the manufacturer to the final seller, has some responsibility for any harm that results.<\/p>\r\n

Product Liability 101<\/h2>\r\n

Product liability involves products that are defective in some way and cause harm to the end user. Each state has its own product liability law based on tort law negligence. Product liability law holds everyone in the stream of commerce liable for the harm. This includes manufacturers, assemblers, wholesalers, and retailers. Even small shops that only sell the finished product can be liable.<\/p>\r\n

There are three types of product liability. Understanding these basic types helps explain why many parties are liable and how businesses can protect themselves.<\/p>\r\n