Teach Soap

Hi everyone!

I just wanted to let you know that RLI's Product Liability (which is what we all need most) is only good up to $5000.00 in sales. After that the only things they cover is your inventory/tools and general liability (if someone trips by your booth at a trade show). Also, the guy I dealt with (who shall remain nameless) was kind of a snot.

One more thing, since I have another business (software development) as a sole proprietor, they weren't going to insure me because I had too many programs out there that they felt they would be liable for (?????). So I reorganized Gina Marie's as an LLC so I could get insurance.

Just wanted to pass it along. Have a fantastic day!!!!
Gina

I think the $5000 sales limit and lower premium is to encourage more people to start small businesses by providing affordable coverage. You can get liability coverage from the base rate of $300,000 up to $1,000,000. I talked with someone from RLI several times and they were always pleasant.

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Linda
I know the voices in my head aren't real, but they sure have some great ideas!

When I asked about the $5000 limit the person I talked to at RLI said that it's $5000 in sales. Meaning, you need to keep track of how much you're selling (something you need to do anyway) and if you get close to selling $5000 then you should look into other options. If there is a product liability claim, they will cover you up to 1,000,000 in damages. The sales limit is a way for them to limit their own liability - if you sell less than $5000 the chances that someone will have a reaction to your product is less simply because you're not selling that much to that many people.

I've had several phone conversations with different people at RLI and they've always been courteous and helpful.

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~*~ Jennifer ~*~

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Linda
I know the voices in my head aren't real, but they sure have some great ideas!

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Thanks Linda & Irena.

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~*~ Jennifer ~*~

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Irena
Closed minds are like faulty parachutes; they refuse to open.

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Linda
I know the voices in my head aren't real, but they sure have some great ideas!

I have their insurance and I was under the impression that the 5,000$ in sales is over 1 years time. And it will go back from the date you were sued. So if you were sued in March your sales would date back until March the previous year. If they check you out and you sold 5500$ in that years time then I guess your insurance agreement with them would be void.
I have only had them a few months, not even close to 5,000$ worth of sales yet. Hopefully never have to worry about a claim...