Products liability insurance
#1
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Products liability insurance
Many years ago,I never thought much about it,always carried plenty of general liability,but no products. Had a big scare 5 years ago,added products liability to the policy,as I became concerned as to the way lawsuits are going. But each year it gets higher and higher and is really causing a strain on our expenses. In talking to my dealer friends it seems about 50/50.Some say it is impossible to afford it,others say they cannot risk being without it. Any thoughts?
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Re: Products liability insurance
wouldnt work in this day and age with out it, everyone is trying to sue over anything to get moeny for nothing, never had to use it but peice of mind.......priceless
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Re: Products liability insurance
I guess it's the piece of mind thing.All our manufacturers carry it of course and ideally they would be the one to take the brunt of the lawsuits,but if it turns out that we didn't tighten a bolt or overtightened a bolt, then it's on us. Only recently has the cost of products gotten so STAGGERING that I even consider taking a fresh look. I used to say I was just working for the bank,now it seems I'm working for the insurance company.
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Re: Products liability insurance
Originally Posted by pachangalpina
You should see how much product liability is to manufacture racing brake calipers.
Piece of cake, market is soft for tough products these days..
#8
Re: Products liability insurance
I have a machine tool repair business, I dont design or build equipment. I still carry Product liability ins. My agent, no actually the insurance company rep that visits me annually explained it. My product is my work, if my work were to fail, this is why I need the coverage. Also, if I had some kind of disastrous warranty claim that I could not handle, this is where thay come in. I pay around $20 per 1K gross total combined with liability, its not cheap, but can be with out it either... Funny that my customers that produce products, dont have the insurance, they say that they produced a part to specs and thats that, they only make component parts not a finished good. There is over a 50/50 chance that every boat has a few parts made by one of my customers...
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Re: Products liability insurance
Originally Posted by Superboat Guy
I have a machine tool repair business, I dont design or build equipment. I still carry Product liability ins. My agent, no actually the insurance company rep that visits me annually explained it. My product is my work, if my work were to fail, this is why I need the coverage. Also, if I had some kind of disastrous warranty claim that I could not handle, this is where thay come in. I pay around $20 per 1K gross total combined with liability, its not cheap, but can be with out it either... Funny that my customers that produce products, dont have the insurance, they say that they produced a part to specs and thats that, they only make component parts not a finished good. There is over a 50/50 chance that every boat has a few parts made by one of my customers...
#10
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Re: Products liability insurance
The problem I run into is that there's no way to afford the amount of insurance I'd need in a worst-case situation so I'd still lose everything after the insurance tapped out. I can't give every nickle of margin to the insurers. Trouble is, much of my competition runs completely uninsured so that's the price I compete against.