Re: liability insurance

[Guest guest]

Hi Kathy

I am in the UK so maybe none of this applies to you, or is incorrect, but

product liability is very hard to find here if that is what you specifically

ask for. In fact it is usually bundled with public liability which is also

hard to find (insurance companies just don't want to know when you are a

small company with small amounts of product, and microscopic public liability

risk!). There is a very simple way round this though, which is to ask for

quotes for insuring your stock and equipment, with product/public liability

included. This seems to be a standard package for small businesses, and from

the quotes I got, there is a very small financial difference between this and

product/public liabilities on their own. Just make sure that you fill in the

forms accurately (at least as important as reading the small print!); mine

have always wanted detailed descriptions of product quality control checks,

and I would imagine that in the event of a claim they would want to see the

paperwork to back this up. The other thing is that every 'serious' quote I

have had, has been directly offered by an underwriting group, irrespective of

which insurance company it has come from or through. I only make and sell

soap, but I would hesitate to insure myself with any company that didn't ask

some very specific questions about my product, and quote on the basis of my

answers, rather than merely on my projected turnover.

I have a limited company (same as your incorporated?) but have been advised

that, here at any rate, this in no way would provide any real financial

umbrella or limitation in the event of a product-based lawsuit. Insurance is

absolutely vital.

I must just add that the cost rockets here in the UK if you tick the box to

include cover for product exported to the USA! Yours is a famously litigious

country...

Rose

The London Soap Company

In a message dated 28/12/01 4:20:49 pm, Cosmeticinfo writes:

<< Hello all,

I'm hoping someone on this list can help me. I'm interested in finding out ab

out product liability insurance; more specifically, the names and numbers of

any companies or agents who can help me get product liability insurance.

I've been in business for just over a year now. I own my own home. Right

now my business operates as a sole proprietorship. I'm afraid someone may

misuse one of my products and take a lawsuit out on me. I sell aromatherapy

products.

I'm also interested in where I can find more info on labeling laws, to be

sure I'm in compliance there.

Has anyone incorporated, or is anyone operating under a limited partnership,

or any such thing? I would sincerely appreciate hearing any pros/cons about

any of this, too.

I look forward to any responses you all may have to offer. I love my

business, but don't want to lose my personal assets should something happen.

Thanks in advance,

Kathy O.

>>