Prohibitive cost of product liability protection

The producer, importer or supplier of a product passes on to the consumer the high cost of protecting himself against litigation for damage cause by a defective product. Legal costs include insurance and fees for lawyers. In the USA, awards by courts for injury has risen at an exorbitant rate. Defensive measures increase the cost of a product. Additional and unnecessary medical tests might be conducted to protect against medical malpractice suits. Industries may be made internationally uncompetitive because of these increased costs.

1. There is a theory of product liability in which the misuse of a product, even when it is not defective, becomes the pretext for a damage claim. Items manufactured in compliance with every safety law, accompanied by careful warnings against misuse, nonetheless become subjects of litigation.

1. Unclear liability
2. Prohibitive costs for businesses
3. Prohibitive cost of insurance
4. Prohibitive administrative overhead costs for aid
5. Predatory litigation

1. Inadequate defence

1. Defective product manufacture

1. Increase in insurance claims for medical negligence

1. Guaranteeing insurance provisions

1. Protection
2. Prohibition
3. Overprotectiveness
4. Liability
5. Costliness