liability-insuranceI’m planning on selling a non-critical replacement part for a power tool. The part works with several brands and it’s low cost, just $15. I don’t plan on selling it through major retailers, only directly.
I have a fear that if a customer is injured by the power tool, I may be exposed to a costly lawsuit even though my product had nothing to do with it. The manufacturer of the tool could easily blame my product as the culprit.
Should I get product liability insurance? Will it protect me from the catastrophic legal costs due to a frivolous lawsuit?
I have a fear that if a customer is injured by the power tool, I may be exposed to a costly lawsuit even though my product had nothing to do with it. The manufacturer of the tool could easily blame my product as the culprit.
Sounds to me like you’ve answered your own question. I would say that given your replacement part is a component in a product that is notorious for causing injuries, it’s best you protect your business with insurance. Even if your part is non-critical.
Though your part may not be a key safety feature, like the safety guard on a circular saw, strange things can happen with power tools that can lead to injuries.
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