product liability

RE: [spiers] product liability

Hi -

Here is the answer from the insurance agent. What are your thoughts?

Hi Leo, The Comsumer Product Safety Act which was enacted in the 1970's
or 80's makes the manufacturer of the product primarily liable for any
claims arising out of defective products. Therefore, where a product is
manufactured in the US, most of the lawyers go for the deepest pockets
and the manufacturers although retailers and wholesalers can be named in
the suits as well.
In your situation, you are the primary source of the product in the US
and the lawyers are going to come after you because it is practically
impossible for them to proceed against your Thailand manufacturers. I
can't think of any other reason to carry the coverage other than
requirements by your customers, protection for yourselves, and the good
of the people harmed by a defective product.
Let me know what you decide to do.


-----Original Message-----
From: wileyccc@aol.com [mailto:wileyccc@aol.com]
Sent: Tuesday, February 25, 2003 10:13 AM
To: leo@hispaniccompass.com; spiers@yahoogroups.com
Subject: Re: [spiers] product liability


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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