You DO NOT want product liability..
You only get sued when you can pay out... If you have a 2mil (or whatever) liability policy,
its an invitation, and you will get sued...
Repeat after me "I make parts to the prints the customer supplies".... "What is it used on?"
"I make parts to the prints the customer supplies"... Rinse and repeat...
Even if you aren't going for product liability, they don't want a single thing to do with you
if you are making a risky product.. They are worried they will get tied up in something they
aren't even insuring..
I'm not even sure who I had, but they sucked.. $386 a month. 2mil general liability, 160k ish
on the machines.. And some other stupid shit.. I bought the building and had to include the building,
I though I was going to get screwed.. I ended with Farmers.. same $2million general liability, they
tagged the building at $386k, I upped the equipment to 280k, plus all the other misc. BS.. Fire and
theft and "Up to 9 bushes or trees at $85 each"... $132 a month last year, $150 a month this year.
And as far as the product liability thing goes.. Go talk to a lawyer... A good lawyer, not a
cheap lawyer, a GOOD lawyer.. They know the laws in your state, they know how to deal with this stuff.
You might be best off making your product in your company now, then selling it to an LLC (possibly in
another state, possibly owned by somebody else) and then selling it to the public.. Double insulation...
Edit: For the record, dealing with insurance on a machine shop is aggravating, and its bull shit... Its
something that should be easy, but its not... An insurance agent that isn't an idiot is helpful..
Lawyers are helpful there also..