Risk Management Tips: Manufacturing

March 5, 2015 | by Avid Risk

Product Liability Coverage

Safe and effective products are the end game for every well-run manufacturing company, but what happens when something goes wrong? Product liability claims can mean huge losses for organizations and may require resources to be tied up in litigation. Limit your exposure to product liability mishaps by following these steps:

Set up a risk transfer program to ensure there is a clear transfer of risk when dealing with contractors or suppliers. Employers should be sure to also vet the insurance policies of any third party.
Set safety standards on imported goods to guarantee that quality is sufficient to meet federal regulations. Ensure comprehensive inspection of all foreign materials.
Establish a rigorous documentations system to review and call upon in the event of a product liability claim. Archive all customer design specifications, engineering change orders and written instructions for the manufacturing process.
Solicit and review customer feedback on safety matters. Set up an easy feedback system to get valuable insight on potentially overlooked hazards in products.

OSHA Calls Death at Ohio Plant Preventable

A 49-year-old machine operator for BRT Extrusions was fatally crushed because his employer failed to ensure the machine was completely powered down as he reached into an extrusion press to remove unprocessed parts. An OSHA investigation into the incident revealed six serious safety violations for exposing workers to dangerous machinery and other hazards. OSHA violations are considered “serious” if an employer has knowledge, or should have knowledge, of an existing hazard that could lead to serious physical harm or the death of an employee. OSHA has proposed $28,000 in fines for failing to institute adequate safety measures.

If you need assistance getting started or reviewing your current liability coverage, AVID Risk Solutions has a variety of resources and tools, in addition to ensure that in the event of an accident, you and your company have the right coverage. Contact Us for more information.