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In Kristi A. Davidson’s first Indemnity and Insurance two-part series in her monthly “Risk Management 101” column in HFN Magazine she considers one of the ways to shift the risk of product liability through contractual indemnity provisions. In part two, Davidson addresses the shifting of that risk to someone outside the stream: an insurance provider.

“Different types of insurance exist to provide money to defend against and, if necessary, to pay damages arising out of product liability,” Kristi writes.

Based on the type of product, volume of sales, where you are manufacturing and other factors, premium rates can vary. Davidson suggests that answering the questions on an insurance application can help direct you to the type of policy you may need.

When it comes to finding the right insurance broker as a start-up business owner, Kristi suggests being prepared to share your business plan with the broker. “As long as you can demonstrate that you are a viable company with a marketable product, the right broker will help you find your way,” she says. 

Read the full article – “Risk Management 101: Insure and Protect (Part 2)” (HFN Magazine, December 20, 2013)