Like Tree0Likes

Products liability insurance

Reply
Old 04-01-2006, 10:10 PM
  #1
Charter Member #415
Charter Member
Thread Starter
 
Join Date: Nov 2000
Location: Jasper,Alabama
My Boats: 1968 Switzer Shooting Star,1967 Switzer Shooting Star,1963 Glasspar G-3
Posts: 3,357
Default 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?
Magicfloat is offline  
Reply With Quote
Old 04-02-2006, 05:07 PM
  #2
Charter Member #415
Charter Member
Thread Starter
 
Join Date: Nov 2000
Location: Jasper,Alabama
My Boats: 1968 Switzer Shooting Star,1967 Switzer Shooting Star,1963 Glasspar G-3
Posts: 3,357
Default Re: Products liability insurance

ttt
Magicfloat is offline  
Reply With Quote
Old 04-02-2006, 05:22 PM
  #3
Registered
 
Join Date: May 2005
Location: Scottsdale
My Boats: 2009 DCB 35/1075's
Posts: 238
Default Re: Products liability insurance

doesnt the manufacturer handle that? or does it still filter down to the dealer?
Bottomfeeder is offline  
Reply With Quote
Old 04-02-2006, 06:03 PM
  #4
Registered
 
GOODT's Avatar
 
Join Date: Apr 2005
Location: KENT ISLAND, MARYLAND
Posts: 2,675
Default 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
GOODT is offline  
Reply With Quote
Old 04-02-2006, 06:11 PM
  #5
Charter Member #415
Charter Member
Thread Starter
 
Join Date: Nov 2000
Location: Jasper,Alabama
My Boats: 1968 Switzer Shooting Star,1967 Switzer Shooting Star,1963 Glasspar G-3
Posts: 3,357
Default 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.
Magicfloat is offline  
Reply With Quote
Old 04-02-2006, 07:00 PM
  #6
Registered
 
pachangalpina's Avatar
 
Join Date: May 2002
Location: Cumming GA
My Boats: 38' Fever
Posts: 931
Default Re: Products liability insurance

You should see how much product liability is to manufacture racing brake calipers.
pachangalpina is offline  
Reply With Quote
Old 04-02-2006, 11:45 PM
  #7
Registered
 
blaniac's Avatar
 
Join Date: Oct 2004
Location: Thousand Oaks, CA
My Boats: 2005 Shockwave Magnitude Twin Raylar HO600's
Posts: 483
Default Re: Products liability insurance

Quote:
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..
blaniac is offline  
Reply With Quote
Old 04-03-2006, 08:32 AM
  #8
Registered
 
Superboat Guy's Avatar
 
Join Date: Jul 2004
Posts: 264
Default 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...
Superboat Guy is offline  
Reply With Quote
Old 04-03-2006, 06:12 PM
  #9
Registered
 
blaniac's Avatar
 
Join Date: Oct 2004
Location: Thousand Oaks, CA
My Boats: 2005 Shockwave Magnitude Twin Raylar HO600's
Posts: 483
Default Re: Products liability insurance

Quote:
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...
Most of what your agent and you have said above is true, with the exception of every component being a finished good in some form and at minimum your part could have caused another part to fail and so on (contributory negligence). The only way I WOULD NOT carry insurance in your situation would be if the end user is adding you to their policy as a Vendor/Additional Insured along with a written Hold Harmless/Indemnification agreement. Your $20 rate per $1,000 is pretty high, but your sales might not be high enough to get you a better rate, so the carrier is looking for premium.
blaniac is offline  
Reply With Quote
Old 04-03-2006, 06:43 PM
  #10
Registered User
 
Join Date: Oct 2003
Posts: 9,495
Default 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.
Chris Sunkin is offline  
Reply With Quote
Reply

Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
cigarette275
General Boating Discussion
19
03-21-2006 06:21 PM
Sandahl
General Boating Discussion
8
08-08-2003 09:16 AM
mr_velocity
General Boating Discussion
14
07-17-2003 11:25 AM
FlyFast
General Boating Discussion
3
11-08-2002 11:45 PM
Cord
General Boating Discussion
8
01-17-2002 08:26 PM



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 03:07 PM.


Copyright 2011 OffShoreOnly. All rights reserved.