The other day a thought came to me, how long after you close a business (food products, bath and body products..) would you have to carry product liability insurance. Would putting an expiration date on the product and have post a ”do not use after such and such a date” be a sufficient cut off date to cancel the insurance? What is your insurance company’s policy on this issue?
Product Liability Insurance
Published June 1, 2009 Sweet Cheeks Soap Company 5 CommentsTags: insurance companies, product liability
Good question. I don’t know that answer.
Good question, Laurie. I suppose to be absolutely safe you would have to continue to carry liability insurance for a while. However, I often wonder — how many of us have actually had a law suit? And how frequent is it that we would be liable for some issue a consumer finds fault with? The other safe thing would be to incorporate, thereby separating your personal assets from your business assets. That’s the major reason we incorporated in my therapy practice. Let me know what comments you get. Jane
I hadn’t thought about that. I set up my company as an LLC so that, like Jane, personal assets are separate from business assets. I would think that an expiration date would help in your favor if something came up, but I don’t know for sure. Donna
What answers did you come up with?
I never did find out, on solution would be to put an expiration date on your products.