Can A Store Get Sued For A Product It Didn't Make?

If you run a retail store, you may have never thought about getting sued for products you buy from a manufacturer. However, it's a real risk that you should be prepared for with the right business insurance.

Anyone Can Sue Anyone for Anything

The first thing to understand is that getting sued doesn't mean you will lose. Anybody can sue anyone for just about any reason. Depending on what the claim is, it could get thrown out by a judge almost immediately, or you could have to go to court a few times to get it dismissed.

You can never just ignore a lawsuit because ignoring it means you automatically lose. The judge won't decide in your favor, no matter how ridiculous it is. That means you'll need at least several thousand dollars to hire your own lawyer if you don't have business insurance to defend you.

What Does a Real Lawsuit for a Bad Product Look Like?

To understand your chances of winning or losing a lawsuit over a product, you also need to understand when customers can sue. A product liability claim can happen when there was something wrong with the design of the product or if it was manufactured or assembled incorrectly. If you just sell things as you got them from the manufacturer, liability generally falls on the manufacturer, but the customer may still name you in the lawsuit as the place they bought the product from.

Product Modifications

If you do anything to a product, it increases your risk of being sued. For example, a bike shop might assemble bikes it receives from the manufacturer so customers can try and buy an assembled bike. If a customer gets hurt because of faulty brakes, there can be a real legal dispute if the manufacturer made bad brakes or if you installed them incorrectly. Business insurance protects you from this type of claim.

Improper Storage

You may also face a product liability lawsuit if you store a product incorrectly. A common example is not keeping cold or hot food at the right temperature and a customer getting food poisoning. Other types of products, such as chemicals, can also become dangerous if you store them at the wrong temperature or in direct sunlight. This is another situation where you could be found liable but business insurance could protect you.

To learn more about protecting yourself from product liability lawsuits, contact a local business insurance company today.