Commercial Liability Insurance Laws

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Laws that you need to know when considering your La Habra, CA commercial liability.

One of the most important aspects when it comes to fully understanding your responsibility for the services and products that you offer is knowing how your responsibility is defined by law. Even though each state can have slightly different laws when it comes to how legal liability in enforced, there are two legal theories to take into consideration – strict liability of defective products and negligence.

Strict Liability

With the theory of strict liability, the focus is on the product itself and whether or not the product is defective. A product can be considered “defective” only if it presents a substantial likelihood of harm to a consumer due to:

  • Manufacturing defect – when the product is not manufactured to comply with the design.
  • Design defect – when the product does not include a feasible and necessary safety feature.
  • Instructions and warnings defect – when the communications, such as the manual, instructions, or labels, that accompany the product are inappropriate, inadequate, misleading, or confusing.


With product liability negligence, the focus is on the conduct of the product seller or the manufacturer of the product and the failure to use reasonable care in some manner of the selling or manufacturing of the product. An injured consumer could argue that the seller did not use reasonable care when installing or assembling the product or that the manufacturer did not use reasonable care during inspection and quality control processes.

Keeping your business protected with the right commercial liability insurance policy can help to make sure that you are not financially devastated from just one incident or lawsuit. Contact the independent insurance professionals at Martplan Insurance Agency in La Habra, California for all of your commercial insurance needs to keep you covered from any peril that your business may face.