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.