NPE2015
5
Key Insights to Help Manufacturers Manage Brand & Reputation Risks
2015
Every product’s life cycle begins at design and ends at
disposal, but liabilities can exist at any stage. To help avoid
product liability claims, review each stage to determine if
potential liabilities are adequately controlled.
RELATED LINK:
Explore the Product Life Cycle
Key safety considerations include:
Design review and hazard analysis
Warnings and instructions
Production quality control procedures
Defective, faulty or misused products can cause injuries, property
damage and business interruption. Your response to complaints can
help you take positive steps at an early stage to minimize potential
exposures.
RELATED LINK:
Learn More About Product Liability
Here are some best practices in complaint handling:
Be visible and accessible. Make it easy for consumers to share their concerns
Be responsive. Respond to complaints quickly and courteously
Be fair and objective. Handle a complaint on its merits, with fairness to all concerned
Be accountable. Ideally, your company’s commitment should be written and properly
communicated
A risk transfer program can help your business avoid financial
vulnerability to damages and claims due to liabilities caused or
contributed to by others. Without effective risk transfer, decisions of
liability are often made after the fact, in court.
RELATED LINK:
5 Steps for Managing Product Liability
Following are two key elements:
Hold harmless agreements can help ensure that contractors and suppliers are
contractually responsible for their own negligence and/or errors and omissions in the case
of a claim
Confirming the financial responsibility of contractors and suppliers by requiring they
have appropriate insurance and limits can help your company avoid bearing financial
responsibility for product-related claims resulting from their products or services
Counterfeit components are a risk that every manufacturer faces,
especially in other countries. Even if a part looks exactly as you
were expecting, it could still be a fake. Counterfeit parts can lead
to injury, property damage, and harm to your brand.
Here are some steps to reduce the chance of problems:
RELATED LINK:
More Ways to Spot Counterfeit Parts
Supplier selection criteria
Engineering controls
Component sampling, inspection and testing
Legal systems in other countries are often very different from what we
are used to in the U.S. When working with overseas suppliers, you
should be aware of the potential risks.
These include:
RELATED LINK:
Build a Data Security Policy
If a faulty component leads to injury or property damage while using your product, you may
face legal damages
If your product does not comply with regulations, you may be fined or ordered to stop
production
Suits filed within the United States may be treated differently in other countries
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2015
From the NPE floor:
Digital printing has increased applications in plastics manufacturing, but will
require quality control steps to ensure accuracy of printed material.
For more manufacturing risks and trends,
visit www.travelers.com/manufacturing
This program or presentation is only a tool to assist you in managing your responsibility to maintain safe
premises, practices, operations and equipment, and is not for the benefit of any other party. The program or
presentation does not cover all possible hazardous conditions or unsafe acts that may exist, and does not
constitute legal advice. For decisions regarding use of the practices suggested by this program or
presentation, follow the advice of your own legal counsel. Travelers disclaims all forms of warranties
whatsoever, without limitation. Implementation of any practices suggested by this program or presentation is
at your sole discretion, and Travelers or its affiliates shall not be liable to any party for any damages
whatsoever arising out of, or in connection with, the information provided or its use. This material does not
amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers,
nor is it a representation that coverage does or does not exist for any particular claim or loss under any such
policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all
applicable policy or bond provisions, and any applicable law.
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