Product liability insurance

avant_garde

Hi, I have just started a small business. I make (and have just started selling), custom made electric longboards down here in Cornwall.
Bottom line is that I need to get product liability insurance...and I can't find any one that will sell it to me for my electric longboards.

Can anyone help me ...point me in the right direction...anything!!!

I'm starting to feel that this is a non-runner even though I have lot's of people wanting to buy my custom made boards. All my parts are bought from within the EU.

Looking forward to any replies/advice. Thanks.

mgfvvc

Where have you looked? Online searches, local brokers, specialist brokers?

avant_garde

[FONT=&quot]Thanks for the reply.[/FONT]
[FONT=&quot]Online and local so far...I have not found any "specialist brokers", not here in the UK anyway. I've come across one in the USA so I have emailed them to see if they have any offices here in the UK.

Are you able to recommend any specialist brokers here in the UK? ...or tell me how I go about finding such a broker?

I have typed in every conceivable permutation regarding electric longboards, adventure sporting goods, skateboards etc etc into google and I'm just going 'round in circles[/FONT]

rs65

don't think you need to be specific about what the product is. Just Google products liability insurance or try any local broker.

unforeseen

I wonder if your lots of people are aware that they can not be used in public areas as they fall within the same area as Segways and hoverboards etc.

That may be part of the reason not to be able to get insurance.

They are considered to be motor vehicles and must conform to the normal legal requirements however the chances of them being road legal are slim to non-existent.

avant_garde

@ unforeseen...lol, okay grandad here we go!!

I'm talking about product liability insurance and nothing else.

Out of interest - No they are not considered a motor vehicle and there are no UK laws covering electric longboards (not yet anyway) ...they are not in the same class as Segways, Hovverboards, hard to believe but true.
I agree you can't use them on the road...but then again...
A guy was arrested for riding his electric longboard home after drinking in the pub...it was thrown out of court by the judge. He said it was clearly NOT a motor vehicle blah, blah, blah.
...but you have got me thinking...if you can get product liability insurance for pedal cycles which you can ride on the road then I should be able to get it for my electric longboards for use in parks and other recreational spaces, promenades etc.

You need to be dead specific with the insurance broker otherwise it's not worth the paper it written on and I won't be covered if anyone makes a claim.

dacouch

If they motorised and can be used on the road or pavement etc (Whether legally or not) then Product Insurance will be fairly expensive to buy.

This is due to the possible problems with the Road Traffic Act which complicates it for the Insurer and Insurers perception that there is the potential for them to receive considerably more claims than they would do from a product that is not motorised.

I could probably recommend some companies for you but I would estimate the prices would start at a minimum of £1k and are more likely to be nearer the £3k to £5k mark

rs65

avant_garde wrote: »

I have typed in every conceivable permutation regarding electric longboards, adventure sporting goods, skateboards etc etc into google and I'm just going 'round in circles

avant_garde wrote: »

You need to be dead specific with the insurance broker otherwise it's not worth the paper it written on and I won't be covered if anyone makes a claim.

The point I was making was to take longboards out the equation.

You are manufacturing/assembling and retailing a product. It shouldn't be difficult to find - although as said above, may not be cheap.

avant_garde

Yes, I agree dacouch...there is also the "hover-board" craze last year when a whole load went up in flames due to the Lipo batteries being over charged.

At least my charger recognizes the battery type, number of cells etc and can never over-charge. ...but try telling that to the insurance broker!!!


I think I'm going to have to get the customer to sign a disclaimer before the board is sent out.

dacouch

avant_garde wrote: »

Yes, I agree dacouch...there is also the "hover-board" craze last year when a whole load went up in flames due to the Lipo batteries being over charged.

At least my charger recognizes the battery type, number of cells etc and can never over-charge. ...but try telling that to the insurance broker!!!


I think I'm going to have to get the customer to sign a disclaimer before the board is sent out.

The fire issue certainly won't help Insurers but the main issue for an Insurer will still be the potential problems with the Road Traffic Act for the Insurer which could mean they need to be an Authorised Insurer eg an Insurer that is legally allowed to insure motor vehicles.

I'm guessing the motors come from China or America which won't help either

avant_garde

@rs65 ...yes I know what you’re saying. I've tried skirting round the specifics in order to get a quote but sooner or later every on-line form that I've filled out to date eventually asks what the product is or what trade it comes under. If the specific trade is not listed then you have to call them...and then within 10 seconds they say "no".

I know that if I'm not 100% honest with the broker then god forbid, if anyone ever made a claim the broker would simply turn around and say no you are not covered.

...I'll ask the customer to sign a disclaimer which is about all I can do.

I think the reason why the insurance companies don't want to know is because of the Lipo batteries and their inherent dangers.


I would like to say thanks to you and everyone else that made the effort to reply.