I am considering selling a few boards for the first time. An insurance friend of mine warned me that I might get sued if someone gets hurt on a board that I produced. It seems a little ridiculous, but just how much risk exposure would I have?
Thanks,
Gary
Functionally you probably don’t have much to worry about, as you are not a big target for a lawsuit. As such, someone looking for big money (which they would be if they filed this kind of lawsuit) would not go after you for two reasons:
You could indeed be sued for faulty product. However, you probably have no insurance for the product liability on the boards (this would be a dedicated Business Policy for your board building operation), and your homeowners insurance would probably not cover this. That means any damages awarded for faulty product would be paid out of your pocket. Initially this sounds bad, but the reality is that any savvy lawyer would see this right away and realize that there is not much to gain. If they want to go after someone it would be someone like Rusty who carries a nice fat insurance policy.
You would be a “test case” because no one has ever tried to sue a board manu and won major damages, so any lawyer involved on the claimant’s side would either be taking a real shot in the dark or would be looking to “make a name for themselves” by setting case precedent. Even if such a precedent was set, there is not a big universe of entities to attack once this field is opened up. After all in the scheme of things the surfboard industry is small and poor. There are many other industries which make better targets.
Keep in mind this is just my 2 cents…
I am considering selling a few boards for the first time. An insurance friend of mine warned me that I might get sued if someone gets hurt on a board that I produced. It seems a little ridiculous, but just how much risk exposure would I have?
Thanks,
Gary
Note the key words here…‘an insurance friend’, possibly a contradiction in terms. Of course he thinks you can get sued, so that he can sell you insurance to protect against that. They will sell you insurance against being hit by stray comets if youy are worried about it. But, don’t be.
The only current case is Some Idiots who are suing a leash manufacturer and a surf shop over whatthey claim is a defective leash. Their chances are slim. And, as mentioned above, even if they do win the case, what are they gonna get, a surf shop and a couple of boxes of Acme Leash Co stationary? 'Cos surf shops are small potatoes and the leash company is a rented office and a phone number someplace and that’s about it.
If somebody gets hurt using a board you made, surfing is ( like snowboarding and some other stuff ) considered ‘inherently dangerous’, which kinda knocks most lawsuits out of the box. Put a small print disclaimer on the back of your sales slips, which will do as much good as insurance. .
And if you want to learn more… http://www.findlaw.com/casecode/ - I used to date a lawyer, what can I say?
hope that’s of use
dopc…
Thanks for the advice and the reassurance.
Gary
we have a release of liability sticker that goes out on our boards its a little legal discalaimer…"
Surfing can be a dangerous sport blah blah blah.surf within your ability blah blah blah improper use could result in serious injury or death By purchasing this product you agree to the terms stated above and release paradox distribution from liability" thats the jist of it as i remember it.
offer customers insurance with the boards …in hawaii we have no fault insurance…some friends of mine have encouraged me to conceptualize the next evolutionary step in insurance evolution…Your fault Insurance…based on the concept that nothing is ever your fault it is always sombody else’s fault…hence in an accident you pull your card that says Your fault not My fault … and this will insure that the lowest rates and best settlements…for any one with these policies …Your fault revolution will make a generation of fault free …this should be like the best sales oppertunity of the century 1/2 the cost of no fault…1-800 YOUR PAY…opperators waiting to take your call…ambrose…