Posted by admin on December 24th, 2009
Some insurance policies covering business include product liability coverage that is connected to the production and marketing of goods to the consumers. This type of insurance coverage protects the seller or the producer from liability due to malfunctioning or defects of the product claimed by the final customer. In case this coverage makes part of a general liability insurance policy for the business, it is also referred to as called products-completed operations coverage.
In order to understand how much importance this type of coverage may have for your business, it is important to fully understand the consequences of not having it. When you don’t have such insurance coverage, your business can face on of the following three types of claims:
1) Malfunctioning or defunct product – Such claims can arise due to errors or defects during the manufacturing process, rendering the final product defunct or even unsafe to use. One of the most recent examples of such claims are legal actions against Chinese manufacturers due to the use dangerous chemicals in the production process.
2) Defects in design – Claims of this type are caused by an initially unsafe or even dangerous design of the product. The infamous Pinto claims the Ford company had to face in 1970′s are probably the most memorable examples of such claims.
3) Unreliable warnings – These claims arise from improper labeling or instructions of the product that don’t warn in full about the potential risks and hazards of the product’s use. Think of the “coffee case” filed on McDonalds to understand better.
What people get from these claims is mostly economic and compensatory damages, medical bills and in some cases court and attorney’s fees. And if you think that a business relatively big can face such claims without serious drawbacks, think again, because there were just too many businesses both big and small that went down due to legal action like that.
Those who deal will selling and reselling products and goods are not likely to have any benefits from such coverage, at first sight. Such economic agents are simple distributors and most claims are filed against product manufacturers. But this doesn’t mean that they will not face legal action too. Some states call sellers and distributors together with manufacturers to legal responsibility for putting the product into the market and exposing customers to risks. Read the rest of this entry »
Posted by admin on December 24th, 2009
Before you tie your shoe-strings and take your bank check ready to get insurance, get yourself together and ask yourself – do I really need it? If the answer is “no” – just forget about it and switch onto a new subject. If you still insist you need insurance then please focus on the following articles and give us 100% of your attention.
My name is Ryan and I have been a lawyer for as long as I can remember myself. I gave millions of advices to people that needed my professional help. I don’t do it for money only; I do it because I want to help. I have always been frank with my clients. I offered them to get insurance when I knew they would need it. They were grateful to me because I was right. I want to tell you that there are lots of myths here and there. People spread rumors around and others believe them. I am here to put the record straight and tell you about the false ideas people got so far.
#1: My business is not to be sued. I don’t have enough of profit from the company so they will just leave me alone.
Anybody’s business can be sued and so can be yours. Even when you think you don’t have enough for others to take from you, you are wrong. There is always something to take. Let us give an example. Even if you have a tiny office your equipment and furniture can be seized and sold. Your bank accounts can be seized also and that money will be enough to pay the attorney.
#2: I am protected from liabilities because I am of a corporate format.
Wrong. The corporate format protects individual investors only from personal liability and debts of the corporation for the reasons that were related to the corporate events. All states have the same rules and these rules involved a so-called “corporate veil” that can be removed or adopted according to some circumstances. When a situation like this occurs you may be giving away even your personal assets – such as a house, car or all of your savings.
#3: If I become disabled pr die my family and business partners will carry on without me.
Wrong. Yes they will but not in terms of business. The business won’t survive if it is small and is left without a major member at least this is the biggest theory around it. Kids don’t like to follow their parent’s footsteps when it comes to business. Usually they are interested in other things. But not to disappoint you totally I have to say that I have known cases when the family business survived. Read the rest of this entry »
