Product Liability Statistics: All You Need To Know
As a manufacturer, retailer, or any stakeholder in the distribution chain, information is critical. There is a need to understand the different aspects of product liability insurance, such as cost determination and liability sources. It makes you streamline your operations on the right path.
It is a great idea to be active in knowing the latest developments in the product liability areas. There is no better way of going about this than finding the product liability statistics. This is beneficial for your better decision-making as a business.
Insurer’s Legal Defense Costs
Lawsuits on compensation against companies by consumers will always lead to cost-incurrence. Findings indicate that a more significant proportion of the cases take place out of courts. It comes from the guidance of attorneys between both parties to save on costs. For the cases which the courts handle, the statistics are available.
Going by the 2018 year statistics, the total median expense was $100,000. It was a downtick from the previous year, 2017, whereby the defense cost median was around $125,000. All these were for the personal injury cases. The statistics show that the highest record on the median for the product liability was at $4 million.
For the punitive damages in the past five years, the payouts are at $1.2 billion. This is comparatively more than the other types of damages. For the Class Action Settlement damages, the awarding was approximately $744 million.
Statistics on Product Liability Cases
Product liability cases are not uncommon these days. Most of them need proper guidance from law experts in the field. In this case, it is the product liability attorneys. As a Tucson-based business, being ready for the legal process against you is necessary. It makes you safe from any capitalization of the situation by the complainants.
From statistical data in the United States, the trend on Product liability cases has risen since 2015:
- In 2020, the filed cases were at 56,041.
- It was at a higher mark than in 2018, by a percentage of 29.
- Comparatively, it is the highest number of issues from 2011.
The same trend is taking place for the multi-district litigation (MDL) filings, with a record high of 5,267 cases. In most of these cases, the skewing is against companies in the medical and pharmaceutical fields.
Recall Trends on Products
As a company, it is not your wish to see customers recalling your products. This is because certain financial losses emanate from this. Some recalls can either be voluntary while others are involuntary. There has been a decline in recall incidences for the children’s wellness products such as cleanable water bottles.
This comes from the continuous improvement of the brands to meet the consumer’s expectations. In 2019, the cases were at 776 as compared to that of 2018 with 1250 incidences. The data comes from the U.S Consumer Product Safety Commission (CPSC) on kid’s products.
Product liability statistics are significant to any business. Recently, there has been a continuous increase in cases in the United States. As a business knowing such data guides your decision-making process.
Contact an Experienced Attorney
In Arizona, Tucson Product Liability Lawyers guide on what procedure to follow. It is necessary to understand which type of liability is in the case to plan well. Contact us today.