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Product Liability: Are You Covered?

By Patty Schmucker July 2007 issue of Skin Inc. magazine

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When it comes to product liability insurance for your spa, there can be many questions. Should you have product liability insurance if you own a spa and sell products to clients? Are you legally exposed if your client has an adverse reaction to a treatment, is injured while at your spa, or believes that you failed to warn her about a product you sold that might have ingredients or packaging that could cause harm?

The answers to these questions depend on many factors, including the location of your business, whether you can prove you followed a manufacturer’s instructions, the quality of the relationship you have with your clients, and where you fall in the supply chain. Knowing these answers can help you when potentially difficult situations come up down the road.

Chain of command

It’s best to start by understanding the supply chain. The Food and Drug Administration (FDA) and the United States legal system have, throughout the years, legally identified what constitutes a manufacturer, a supplier and a seller, or, in other words, the major players in the supply chain.

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