Product liability insurance

dacouch

avant_garde wrote: »

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

The Insurers do not want to know because it has an engine and can potentially be used on the road or pavement and lead to claims against you and thus the Insurer

The battery is just another nail in the coffin.

avant_garde

dacouch wrote: »

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

You are right again, anything from China is a no-no as far as the insurance companies are concerned. All my parts including the motors all come from within the EU.
Yes my boards have a top speed of 25mph so you can't really compare with a regular skateboard...but then again do regular skateboards have problems with Road Traffic Act...I don't know.
Thanks again for your (and everyone elses) advice...just need to process it all and come up with a way to move forward now. Bottom line is product liability insurance is not going to happen with regards to my electric longboards.

rs65

avant_garde wrote: »

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 very much doubt that on-line will be your answer here. You need to find a proper broker - try biba.org.uk. They have a find-a-broker function.

If a broker says no in 10 seconds then they clearly haven't bothered looking.

Of course you have to be 100% honest - goes without saying.

mwarby

I would expect an insurer would want to see proof of independent safety testing and CE certification of your product.

I doubt for this insurance and in this high risk area (people in motion, motors, lithium batteries and chargers) you won't find anyone who'll quote on an online form or over the phone. As others have said you'd need a specialist broker and insurer

mwarby

Regarding your business, are you a limited company or sole trader ? I can see definite advantages to a limited company in your case

EdGasket

Can you get around liability by selling it as a 'kit' with a minimal bit of final assembly so that the purchaser takes on the liability? See the following which relates to aircraft kits:

http://www.avweb.com/news/avlaw/181900-1.html

"Plaintiffs have often been reluctant to sue kit manufacturers because the manufacturers have always "gone bare." They have manufactured and sold kits without product liability insurance. The fear of winning a long and costly product liability battle against a kit manufacturer only to face the difficulty of collecting a judgment against assets, which may only consist of plans and parts, has been sufficient to dissuade most attorneys from pursuing such cases on a contingency fee. "

EdGasket

I have an idea for an electronic gadget which is mains powered however the notion that I could sell maybe 1000 units and get sued by 1 stupid person who claims to have injured themselves wiping out my profit puts me off attempting to manufacture and sell it. Red tape and litigation are stiffling innovation, as is people who can't take responsibility for themselves and always want to blame something/someone else supported by ambulance chasing lawyers.

lovinituk

There is a whole raft of health and safety testing and regulations that you may need to be compliant with. It will almost certainly need CE marking, even if all the components you use are already CE marked.

This may not be the exact points to follow but this gives you an indication of what might be required - http://www.hse.gov.uk/work-equipment-machinery/refurbished-modified-machinery.htm

You should get in touch with trading standards and a couple of UK testing houses for advice.

I think insurance is the least of your worries at this stage. There is a potential huge cost of just having the thing tested and approved.

avant_garde wrote: »

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

Won't be worth the paper it's written on.

EdGasket

Yeah, which is why I haven't bothered. Have made some prototypes for my family use only and that's it. Works better and save's a fortune compared to commercial items but I can do without the hassle of selling it to joe public.