product liability

Re: [spiers] product liability

I used to have an herbal sof tdrink company,"Majik Mint" I can tell you
this from experience- John is right about the liability insurance. However,
if you are planning to use a major foods distributor,(and beleive me, if
you have crunched the numbers) you will have to eventually hook up with a
distributor. THEY all require liability insurance- YOU are considered the
manufacturer, even-though you are actually the importer. It is a good idea-
Any problem with the drink, spoilage, foreign material in the container,
etc. ALL filters down to you. Consider it the cost of sleeping at night. I
was paying 110.00 per month for my liability ins. Best place to price is a
private insurance broker who writes commericial insurance. IT is NOT a LAW.
David
At 10:13 AM 2/25/03 EST, you wrote:
>
>In a message dated 2/25/03 6:54:35 AM, leo@hispaniccompass.com writes:
>
><>importer of this product I was told (by an insurance agent) that - by
>law - I have to have product liability insurance - and that it costs
>anywhere from $5000 upwards - if an insurance company wants to "touch" a
>new company. >>
>
>I actually cover this in the book... but wouldn't it be wonderful if there
>was a law you had to drink coffee from a glass mug? My business would be
>better!
>
>There is no such law about glass mugs, and I doubt there is one about
product
>liability insurance. If his business benefits from such a law, he certainly
>would be able to cite the law for you. Ask him. If upon clarification
there
>is no such law, then you are unstuck.
>
>Remember to evolve around your "clients" , that is to say, if they say you
>need product liability insurance then get it. Did they tell you to get it?
>
>John

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