Product Liability Insurance Needed
10-05-13, 04:23 PM
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Product Liability Insurance Needed
After several years of product development I am finally launching a new product into the bicycling industry. I need guidance on product liability insurance for this. Any recomendations on where to purchase this type of insurance?
Thanks in Advance
Thanks in Advance
Last edited by no1mad; 10-05-13 at 05:02 PM. Reason: Info violating Solicitation guideline has been removed.
10-05-13, 05:19 PM
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It strikes me that you need to speak to a commercial insurance broker. Like so many threads that ask legal questions, you really need to speak to a professional to make sure that you are adequately protected both in transferring the risk to a carrier and to make sure you have properly protected yourself through incorporation.
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10-05-13, 06:54 PM
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It strikes me that you need to speak to a commercial insurance broker. Like so many threads that ask legal questions, you really need to speak to a professional to make sure that you are adequately protected both in transferring the risk to a carrier and to make sure you have properly protected yourself through incorporation.
10-06-13, 07:23 AM
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The smaller the operation the harder a coverage, like product liability, is to place. Since the price relative to a potential claim is low so, if you don't have a claim it doesn't help the underwriter's book of business measurably. If you do have a claim, it will blow his loss ratio out of the window.
I suspect your best bet would be to bundle the product coverage with some other, more easily underwritten coverages.
I suspect your best bet would be to bundle the product coverage with some other, more easily underwritten coverages.
10-06-13, 07:28 AM
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As a fellow Lincolnite, could you tell us what the product is, and where I might see it?
And may I add that you really should have Insurance in this sue happy nation.
And may I add that you really should have Insurance in this sue happy nation.
10-06-13, 07:38 AM
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retro
No assets? With today lawyers he could find himself standing out in a field naked without any underlovlies!!
No assets? With today lawyers he could find himself standing out in a field naked without any underlovlies!!
10-06-13, 07:39 AM
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Thing is, since he designed it and now selling it, if he provides a link to it- publicly, out in the open like in this thread- then he would be in violation of the Solicitation Guideline.
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10-06-13, 08:49 AM
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He could also just get a premium membership and not have to worry.
10-06-13, 10:19 AM
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The EZRIDE Adjustable handlebars are not yet for sale.
10-06-13, 10:32 AM
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Thanks
10-06-13, 10:36 AM
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10-06-13, 12:43 PM
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I have been told by a couple different persons with experience in 1-person manufacturing (in the USA) that "the way it is usually done" is that you don't have product liability insurance. Nobody will cover you for a reasonable cost.
What you do is move all of your business assets into an LLC and save part of the profit into a legal fund under the LLC. If/when you get sued (one or more times) and then once the legal fund is gone, the LLC goes away too.
If you are just re-selling the item, the liability is much less cost and easier to get.... but if you originated the item's design specifications, you could still be considered to be the manufacturer. So sending CAD files to China and then claiming "its their fault" isn't going to work.
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10-06-13, 06:29 PM
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[QUOTE=bikeguy55;16137154]Yes, give me a call and you can see and ride it.{/QUOTE] Might I remind you this is a public forum? Anyone who uses google can find it. You might want to remove your phone number.
Last edited by walrus1; 10-07-13 at 08:57 PM.
10-07-13, 05:46 PM
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But the number's still visible because you quoted him,so you need to edit your post as well.
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10-07-13, 09:18 PM
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Warning: I am not an expert, but I am on a similar path.
I have been told by a couple different persons with experience in 1-person manufacturing (in the USA) that "the way it is usually done" is that you don't have product liability insurance. Nobody will cover you for a reasonable cost.
What you do is move all of your business assets into an LLC and save part of the profit into a legal fund under the LLC. If/when you get sued (one or more times) and then once the legal fund is gone, the LLC goes away too.
If you are just re-selling the item, the liability is much less cost and easier to get.... but if you originated the item's design specifications, you could still be considered to be the manufacturer. So sending CAD files to China and then claiming "its their fault" isn't going to work.
I have been told by a couple different persons with experience in 1-person manufacturing (in the USA) that "the way it is usually done" is that you don't have product liability insurance. Nobody will cover you for a reasonable cost.
What you do is move all of your business assets into an LLC and save part of the profit into a legal fund under the LLC. If/when you get sued (one or more times) and then once the legal fund is gone, the LLC goes away too.
If you are just re-selling the item, the liability is much less cost and easier to get.... but if you originated the item's design specifications, you could still be considered to be the manufacturer. So sending CAD files to China and then claiming "its their fault" isn't going to work.
My contact had no leads on any rogue insurance companies who specialize in small production manufacturing. We did chat about the idea of simply shielding yourself with the LLC umbrella. In your case, you have two umbrellas. Next time we get together lets chat about other things to do to thicken the corporate veil.
07-15-21, 04:19 PM
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From My Lawyer,
My contact had no leads on any rogue insurance companies who specialize in small production manufacturing. We did chat about the idea of simply shielding yourself with the LLC umbrella. In your case, you have two umbrellas. Next time we get together lets chat about other things to do to thicken the corporate veil.
My contact had no leads on any rogue insurance companies who specialize in small production manufacturing. We did chat about the idea of simply shielding yourself with the LLC umbrella. In your case, you have two umbrellas. Next time we get together lets chat about other things to do to thicken the corporate veil.
This is from 2013....probably already has insurance....or not.
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07-16-21, 07:05 AM
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It strikes me that you need to speak to a commercial insurance broker. Like so many threads that ask legal questions, you really need to speak to a professional to make sure that you are adequately protected both in transferring the risk to a carrier and to make sure you have properly protected yourself through incorporation.
07-16-21, 01:22 PM
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Weird. I think it must have been a spammer who revived this, his post has disappeared. Probably should have locked it.
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07-16-21, 05:00 PM
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Yea wow...that is odd...
07-16-21, 05:34 PM
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07-16-21, 08:07 PM
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yeah, this thread seems like a spammer magnet. closing
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