Posted by Alimar Private Label on 4/20/2015 to Education
Bottom Line: Carry your own liability insurance.
Simply put, if your company produces a product by adjusting any ingredients in the container, OR by placing your brand name on the packaging (i.e. private label), you will assume some level of product liability for that product.
In the United States, any seller of a product (not just the manufacturer) is liable for losses, injury or damage caused by a defective product.
An injured party may file a suit against the wholesaler/distributor and may or may not also sue the product manufacturer. The fact that a wholesaler/distributor did not create the defect, or did not participate in the design, production or manufacture of the product, or did not write the product instructions or warnings, is no defense.
You are ultimately responsible for the products you sell under your brand name.
*We are not attorneys nor are we affiliated with any insurance carriers. Any and all information disclosed is not to be construed as legal advice. We recommend you contact an attorney in your specific jurisdiction for specific information regarding liability insurance or any other legal questions you may have.