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Product Liability Insurance


#1

I have been considering getting product liability insurance. I am
concerned about someone getting hurt with one of my pieces and suing
me for damages… i.e. poking their eye out with a brooch pin or a
sharp point on a brooch during a car accident etc. I tried the
insurance company that insures my house and car, but they don’t
offer product liability. I am a hobby jeweller and sell only a small
number of pieces each year.

Do any Orchidians have product liability insurance? Do you believe
that it is required? Can any Canadian Orchid members recommend a
Canadian insurance company that currently covers them for product
liability.

Looking forward to your opinions and advice

Milt Fischbein
In snowy Calgary Alberta Canada.


#2

I have product insurance for the jewelry kits that we have developed.
We are registered in the State of Missouri as a Limited Liability
Company and the insurance is written through State Farm Insurance
Company. The agent’s name is Howard Bittick. He is in the St. Louis
office. We carry one million dollars of coverage. If you have a
State Farm agency where you reside, I would suggest you contact them.
Hope this is helpful.

Razine Wenneker, Manager
Ellie Rose LINK-ABLE Designs, L.L.C.
E-mail: @Razine_Wenneker
Web site: link-able.bigstep.com


#3

I was wondering if anyone has ever taken out product liability
insurance on their jewellery. I am concerned that one day a customer
might be harmed by a piece of jewellery that I have sold and come back
and sue me. While this may sound strange, I believe that it would be
possible to get poked in the eye with one of my brooches during a car
accident etc.

Has anyone ever been sued by a customer because they were hurt by a
piece of jewellery? Have any Orchidians ever taken out product
liability insurance for their products.

If you do have liability insurance, what company do you use and what
does it cost?

Milt Fischbein
In sunny (but cold) Calgary Alberta


#4

Have you ever considered selling your jewelry with a disclaimer?
“Purchaser should exercise caution wearing this ornament while
driving at speeds over 120mph” or something of that nature… I
avoid making extremely dimensional rings even though they may be
very eye-catching because they can also be very finger-catching. One
of my more dreadful childhood memories is of a neighbor whose ring
caught on a nail while she was hanging curtains. The ring and the
finger remained on the nail while the rest of the lady fell to the
floor. I still shudder when I see some of the dangerous constructions
people wear on their hands. Dee


#5

Dear Milt,

It is possible to get sued for anything, and here in the states it’s
not very difficult to find a lawyer willing to do battle.
However…besides making jewelry in my spare moments I’m a property
and casualty insurance agent. Products Liability policy are using
priced based upon “exposure”, and in truth our exposure is not great.
If you just go looking for a “products” policy you will probably run
into “minimum premiums”, meaning it costs more to process the policy
than the exposure calls for. A better way to go is to look for a
"Business Owners Policy" (BOP), or a package policy. This would give
you coverage for the liability along with coverage for your stock,
tools etc. This coverage can be purchased at levels you determine,
in some cases it Could include off premises coverage, such as away at
shows etc. Another way would be to add a business owners endorsement
to an existing home owners or renters policy. These would cover
liability in most cases, and may or may not cover stock, tools etc.

in Michigan were we have 14 inches of snow on the ground Cass
@Cassbeads


#6

Dear Milt,

I have some product liability but it’s part of a total liability
package. I was concerned with the possibility that a customer might
get “poked in the eye with one of my brooches,” but I was even more
concerned that a customer might trip over a power cord in my booth at
a show or something like that.

I bought a liability package designed especially for “Crafters” from
a company called Connell (which no longer offers the policy, but more
on that later). It includes $1,000,000 liability for "crafters
selling merchandise from temporary booths in malls and craft shows"
and also provides “product liability protection, once your product
leaves your hands” but, as I discovered when I asked, only for product
sold at shows.

The policy also covers replacement cost coverage up to $5000 for
business personal property, not including losses from theft. This is
not something I particularly wanted but it came with the package. In
fact, as I discovered in my research, where insurance is concerned
everything is part of a package. It’s almost impossible to get just
the coverage you want at an appropriate price. The package I bought
costs $500 a year and is underwritten by Allstate.

After two years of coverage, I got a letter from Connell saying they
were no longer offering the plan. While I was trying to decide what
to do, I got a call from Allstate asking if I wanted to renew directly
with them and I did. The policy is called “Business Package” on the
Allstate receipt I received and you probably could contact them
directly about it if no one else has a better suggestion. Good luck

Beth


#7

While I would need to read the policy for the exact limits I do have
Liability Insurance as a portion of my “Jewelers Bock, Craftsman
Policy” form Jewelers Mutual. As a Trade Shop several of my customers
require that I carry such coverage, and It is not trebly expensive
$1000 or so a year, again I would need to look up the details.

Wayne M Schenk


#8

I have product liability insurance (2 million UKP) as part of my
membership of a county wide craft group, annual membership 20 UKP and
I reckon that’s a good deal. Not much use to you but maybe worth
checking organisations in your area for the extra privileges they
throw in. My nightmare scenario is an earing dropping in the soup,
customer swallows and chokes… nuff said! Andy

Andy Parker, Agate House Lapidary
Ulverston, Cumbria, England
@Andy_Parker
www.agatehouse.co.uk
Tel: 01229 584023


#9
   I avoid making  extremely dimensional rings even though they may
be very eye-catching  because they can also be very finger-catching.
I still  shudder when I see some of the  dangerous constructions
people wear on their hands. 

This is something I’ve always been very careful about. One of my
recurrent themes is dragons, which are sharp and pointy by nature
(wings, talons, crests), and people want them to look that way. But
the trick is to balance that look with safety to create a wearable
piece. Wearability is always my goal.

Janet Kofoed


#10

Has anyone had to deal with getting product liability insurance to
sell their jewelry wholesale?

Regards,
Liana Bennett