Examples of strict liability
Situations that involve strict liability include:
- If youmake or sell defective products that cause harm because of design flaws, manufacturing defects or inadequate warnings.
- If you deal with hazardous materials or chemicals that cause damage due to leaking or spills.
- If you own or keep dangerous animals that escape and hurt someone.
- If youremployees cause harm or damage within the scope of their employment.
Strict liability rules and regulations vary by jurisdiction, so it’s important to consult local laws and legal experts for precise guidance in specific cases.
Strict liability vs negligence: What’s the difference?
Both of the concepts fall within the context of legal liability. The main difference comes down to whether the level of care you’ve exercised is relevant or not:
- Strict liability is based on an activity’s or product’s inherent risks. You become liable merely by engaging in that activity or making that product, regardless of how much care you took or whether you intended to injure anyone.
- Negligence is based on the failure to use reasonable care. If someone establishes that you did not act with the level of care that a reasonably sensible person would have exercised in similar situations, you become liable for the loss or harm caused.
This means that strict liability and negligence differ regarding how you can defend yourself and what situations each term applies to.
Defense
While defenses in strict liability cases are limited compared to negligence, some defenses may still apply. For example, you may have a defense if the harm resulted from unforeseeable circ*mstances or was not directly caused by the activity or product.
In negligence cases, people often use different defenses, like “contributory negligence,” which means that the person blaming you also caused the harm by being negligent, or “assumption of risk,” which means that the person accusing you knew the risk and still did it anyway.
Types of cases
Strict liability is often used in situations involving inherently dangerous activities or products, such as working with hazardous materials, dangerous animals, or defective products.
On the other hand, negligence can apply to a wide range of cases, including car accidents, slip and fall incidents, medical malpractice, and many others, where the main question is whether someone didn’t take reasonable care.
Liability insurance policies you can consider
Businesses that design, make or sell goods need solid liability insurance to protect them if they are sued under strict liability rules.
- Product Liability insurance: This type of insurance is designed to protect manufacturers, distributors and sellers from legal claims arising from injuries or damages caused by defective products.Product liability insurance can help cover legal defense costs and any settlements or judgments.
- Professional Liability insurance: Also known aserrors and omissions insurance, this insurance coverage can help cover damages and legal fees if you’re held responsible for certain actions or omissions that result in harm to clients or third parties.
- General Liability insurance: You can get protection against a wide range of liability claims, including those related to accidents, injuries and property damage.
Mitigate strict liability claims with NEXT
At NEXT, we’re 100% dedicated to small businesses and understand that each business is unique. That’s why we offer custombusiness insurance suited to your business needs.
Just answer a few questions online to give us the full rundown on your situation and receive your tailoredinstant quote within 10 minutes. Once you’ve bought insurance, you can access your certificate of insurance immediately and share it 24/7 via the NEXT app.
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