Constructive (ha) tone intended: How do you address the liability risk to your business?

What happens if your product is involved in a fatal or very expensive construction incident or situation?

What happens if your product is involved in a PE going to jail?

One conventional startup possibility is that the startup shuts down, and its people move on to new startups and other employment. But I'm wondering whether that's different for startups that involve regulated safety-critical work.