garage19
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| posted on 15/5/07 at 12:47 PM |
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Liability Insurance?
Do kit and part manufacturers pay a fortune for liability insurance?
Just wondered how small setups like MK engineering, MNR or GTS get on with liability insurance.
They manufacture cars and suspension components that if failed could potentially result in million pound claims.
I'm quite happy to make catch tanks and inlet manifolds for people as they are not particularily safety critical if they fail. However i turned
a chap down the other day because he wanted me to make some suspension components and it just made me think how other back yard engineering
people/companies get on?
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Guinness
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| posted on 15/5/07 at 12:49 PM |
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Syd! Wake up!
Mike
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nick205
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| posted on 15/5/07 at 12:50 PM |
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You've asked a much debated question there my friend 
You might even draw Syd back into the fray on this one
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garage19
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| posted on 15/5/07 at 01:03 PM |
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Really?
I just thought from an insurance companies point it is a fairly high risk so might be quite costly?
If it was £300 a year for decent cover that would be reasonable for a small business but if it is £3k i doubt there would be many that take it out.
Is the cost also relative to turn over? For example would MK engineering pay the same as westfield?
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fesycresy
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| posted on 15/5/07 at 01:06 PM |
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Thought it was law that you had to have liability insurance ?
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The sooner you fall behind, the more time you'll have to catch up.
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garage19
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| posted on 15/5/07 at 01:08 PM |
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quote:
Originally posted by fesycresy
Thought it was law that you had to have liability insurance ?
Not as far as i know?
Unwise yes, but not illegal.
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mookaloid
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| posted on 15/5/07 at 01:12 PM |
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I don't know about the others but GTS issued terms and conditions a while ago which said stuff like (bear with me I'm going off memory
here):
It is up to the purchaser to inspect the product and decide for himself if the product is suitable for the purpose for which it is going to be
used....
and the products are manufactured to the best of their abilities, but they do not guarantee that the product is suitable for any particular purpose,
because GTS can't foresee all the circumstances in which the product might be used.....
and that if the customer thinks that it is not suitable for the purpose which the customer has in mind, then he should not use it.....
etc etc
You get the idea
Cheers
Mark
[Edited on 15/5/07 by mookaloid]
"That thing you're thinking - it wont be that."
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garage19
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| posted on 15/5/07 at 01:16 PM |
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quote:
Originally posted by mookaloid
I don't know about the others but GTS issued terms and conditions a while ago which said stuff like (bear with me I'm going off memory
here):
It is up to the purchaser to inspect the product and decide for himself if the product is suitable for the purpose for which it is going to be
used....
and the products are manufactured to the best of their abilities, but they do not guarantee that the product is suitable for any particular purpose,
because GTS can't foresee all the circumstances in which the product might be used.....
and that if the customer thinks that it is not suitable for the purpose which the customer has in mind, then he should not use it.....
etc etc
You get the idea
Cheers
Mark
[Edited on 15/5/07 by mookaloid]
So i take it he does not have liability insurance then!
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garage19
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| posted on 15/5/07 at 01:20 PM |
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quote:
Originally posted by fesycresy
Thought it was law that you had to have liability insurance ?
You are thinking of employers liability insurance not public liability insurance.
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fesycresy
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| posted on 15/5/07 at 01:24 PM |
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Just had a check, so employers liabilty is law, by public liabilty isn't ?
ABI
Seems mad to me.
Lyn.
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The sooner you fall behind, the more time you'll have to catch up.
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twybrow
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| posted on 15/5/07 at 01:27 PM |
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Cover is relatively cheap (my boss paid £120 for £1 million cover for an engineering project he designed). The clause these companies use relates to
the work being done to the best of their abilities and without knowingly doing anything stupid! I could be way off, but that is how most small setups
work I believe.
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dilley
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| posted on 15/5/07 at 02:00 PM |
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we have to pay £3200 a year!!!!!!!
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twybrow
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| posted on 15/5/07 at 02:17 PM |
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So I guess it is very dependant upon what they are covering you for!
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zxrlocost
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| posted on 15/5/07 at 06:00 PM |
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youll 99% find there not covered
as above afterall your racing round tracks etc putting a lot of stress on the car
theres loopholes for everything
and no one would earn any kind of living if they had to pay for all these different kinds of insurance
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JoelP
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| posted on 15/5/07 at 06:48 PM |
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i pay £400 for combined employers and public liability, thats fitting kitchens and covered for £2M. I would imagine kit companies would probably have
to pay 10 times that due to the nature of the business.
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Mark Allanson
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| posted on 15/5/07 at 07:40 PM |
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We pay over £7500 a year, but we are putting 35-40 cars a week back on the road
If you can keep you head, whilst all others around you are losing theirs, you are not fully aware of the situation
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